Effects of intergovernmental revenue on local government draw on fiscal reserves: evidence from COVID-19 fiscal stress

Stephen Kwamena Aikins

Local Government Studies, 2023, vol. 49, issue 6, 1198-1217

Abstract: This study investigates the effects of receipt and anticipation of intergovernmental revenues on local governments draw on accumulated fiscal reserves to cushion the impacts of COVID-19-related fiscal stress. Several studies have been conducted on determinants of fiscal reserves accumulation. However, little is known about the determinants of government draw on fiscal reserves, beyond revenue shortfall, in times of fiscal stress. Dwelling on the premise that government’s draw on fiscal reserves is influenced by factors beyond revenue shortfall and controlling for the effects of revenue shortfalls and other factors, we analysed local government survey data to determine the effects of intergovernmental revenue on government draw on fiscal reserves. Results show that draw on fiscal reserves is significantly constrained by percent of FY 2020 revenue received from federal and state governments, but significantly and positively influenced by revenue losses and percent of FY 2021 revenue anticipated from federal government.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/03003930.2023.2212586 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:flgsxx:v:49:y:2023:i:6:p:1198-1217

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/flgs20

DOI: 10.1080/03003930.2023.2212586

Access Statistics for this article

Local Government Studies is currently edited by Helen Hancock

More articles in Local Government Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().