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Author: Asim Dio Publisher: ISBN: Category : Languages : en Pages : 17
Book Description
The growing trend in revenue collection, domestic investment, increasing per capita income, more or less stable inflation, increasing exports and remittance are showing that Bangladesh is well on track in reaching the target of becoming a middle income country very soon. However, the widening gap between total revenue collection and total government expenditure and increasing trends of budget deficit also pose challenges in sound fiscal management in addition to the political and other factors which may hinder the economic development of the country. Furthermore, revenue foregone or loss due to various tax concessions and allowance provisions which is defined as the 'tax expenditure' may hinder the revenue collection and mobilization process and thus economic development. Though tax expenditure is widely used policy option to intervene amidst the market failure ensuring social and economic welfare for vulnerable groups, this policy option has been misused widely because of the systematic leakage causing huge loss of government revenue. This paper explores the present scenario of tax expenditure in Bangladesh in relation to fiscal management and critically analyses the provisions for tax expenditure drawing the domestic and international frameworks and practical experience of tax expenditure statements from other parts of the world. Based on secondary data analysis using desktop research method this paper recommends the introduction of tax expenditure budgeting and reporting as part of the budgeting process in Bangladesh. However, this paper also carefully addresses the trade-offs of introducing tax expenditure to avoid unexpected consequences.
Author: Asim Dio Publisher: ISBN: Category : Languages : en Pages : 17
Book Description
The growing trend in revenue collection, domestic investment, increasing per capita income, more or less stable inflation, increasing exports and remittance are showing that Bangladesh is well on track in reaching the target of becoming a middle income country very soon. However, the widening gap between total revenue collection and total government expenditure and increasing trends of budget deficit also pose challenges in sound fiscal management in addition to the political and other factors which may hinder the economic development of the country. Furthermore, revenue foregone or loss due to various tax concessions and allowance provisions which is defined as the 'tax expenditure' may hinder the revenue collection and mobilization process and thus economic development. Though tax expenditure is widely used policy option to intervene amidst the market failure ensuring social and economic welfare for vulnerable groups, this policy option has been misused widely because of the systematic leakage causing huge loss of government revenue. This paper explores the present scenario of tax expenditure in Bangladesh in relation to fiscal management and critically analyses the provisions for tax expenditure drawing the domestic and international frameworks and practical experience of tax expenditure statements from other parts of the world. Based on secondary data analysis using desktop research method this paper recommends the introduction of tax expenditure budgeting and reporting as part of the budgeting process in Bangladesh. However, this paper also carefully addresses the trade-offs of introducing tax expenditure to avoid unexpected consequences.
Author: International Monetary Fund. Fiscal Affairs Dept. Publisher: International Monetary Fund ISBN: 1498305350 Category : Business & Economics Languages : en Pages : 19
Book Description
This note aims to inform governments on how to account for tax expenditures and use that information in fiscal management. The emphasis is on developing and emerging market economies, where the use of such accounts is in its infancy because of data constraints, insufficient human and financial resources, and weak fiscal institutions. Most developing economies, more-over, do not have tax policy units in their Ministry of Finance to provide analytical support to the govern¬ment and legislature that integrates all revenue policy aspects. As a result, the tax policy framework can be fragmented: line ministries compete in the provision of sectoral tax incentives, but do not report on their cost. The note is organized as follows. The second section outlines the role that tax expenditure measurement and reporting can play in fiscal management. The third section provides a step-by-step approach on how tax expenditure accounts can be built, with emphasis on data, methods and models, and institutional requirements. The section is concerned primarily with the direct cost of tax expenditures—that is, the revenue forgone because of them. It does not deal with their indirect costs, which could include economic efficiency losses and additional tax administration resources, and it does not address assessment of the benefits of tax expenditures. The fourth summarizes the current sta¬tus of tax expenditure reporting in developing econo¬mies, with some reference to advanced economies. The last section concludes.
Author: Swift Publisher: World Bank Publications ISBN: Category : Tax expenditures Languages : en Pages : 31
Book Description
Abstract: "Tax expenditures, in the form of tax provisions, are government expenditures. They are conceptually and functionally distinct from those tax provisions whose purpose is to raise revenue. Tax expenditure programs are comparable to entitlement programs. Therefore, tax expenditures must be analyzed in spending terms and integrated into the budgetary process to ensure fiscal accountability. In addition, tax expenditures must be audited for performance and the information must be published (with comprehensive analysis) to ensure fiscal transparency. The author analyzes the concept and definition, size, and effects of tax expenditures, as well as the fiscal accountability and transparency of tax expenditure spending. In short, tax expenditures affect (1) the budget balance, (2) budget prioritization in allocation, (3) the effectiveness and efficiency of fiscal resources, and (4) the scope for abuse by taxpayers, government officials and legislators. While reviewing the current practices in tax expenditures against the requirements of fiscal accountability and transparency, she finds that this fiscal area must be strengthened. The author sketches four building blocks to strengthen tax expenditures toward fiscal accountability and transparency, based on the literature developed by Surry and McDaniel, the practices from industrial and developing countries, the Campos and Pradhan fiscal accountability model, and the International Monetary Fund's fiscal transparency code. The author argues that normative/benchmark tax structure, a revenue-raising component of the tax system, should be formalized. The normative/benchmark tax structure should be legally defined in the tax law and should be transparent. The tax receipts from this normative/benchmark tax structure should be quantified and published. Presently, many countries could publish imputed tax revenue from normative/benchmark tax structures because such data is available. Only if imputed tax revenue is published in the same way as the other budget components-tax revenue received, tax expenditures, direct expenditures, and fiscal balance-will a budget system be truly transparent in terms of revenue-raising activities and expenditure activities. In addition, when the tax revenue-raising activity is formalized, the inherent spending nature of tax expenditures is further exposed. Therefore, tax expenditures should be added to direct expenditures forming total government expenditures. Furthermore, the conventional concept of the size of government should be remedied by including both direct expenditures and tax expenditures."--World Bank web site.
Author: Mr.J. D. Craig Publisher: International Monetary Fund ISBN: 155775697X Category : Business & Economics Languages : en Pages : 50
Book Description
Transparency in government operations is widely regarded as an important precondition for macroeconomic fiscal sustainability, good governance, and overall fiscal rectitude. Notably, the Interim Committee, at its April and September 1996 meetings, stressed the need for greater fiscal transparency. Prompted by these concerns, this paper represents a first attempt to address many of the aspects of transparency in government operations. It provides an overview of major issues in fiscal transparency and examines the IMF's role in promoting transparency in government operations.
Author: Mr.Jack Diamond Publisher: International Monetary Fund ISBN: 9781557757876 Category : Business & Economics Languages : en Pages : 84
Book Description
Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.
Author: International Monetary Fund. Fiscal Affairs Dept. Publisher: International Monetary Fund ISBN: 1498397999 Category : Business & Economics Languages : en Pages : 81
Book Description
This paper discusses key findings of the pilot Fiscal Transparency Evaluation for the Russian Federation. Most aspects of Russia’s fiscal reporting and budgeting practices are in line with good or advanced practice under the July 2013 draft of the Fiscal Transparency Code. The disclosure and management of fiscal risks has significantly improved in recent years. The evaluation highlights a number of important areas where fiscal transparency practices could be further improved. Addressing these gaps in fiscal transparency practices would enable the government to provide a more complete picture of its fiscal position, prospects, and risks.
Author: Zhicheng Li Swift Publisher: ISBN: Category : Languages : en Pages :
Book Description
Tax expenditures, in the form of tax provisions, are government expenditures. They are conceptually and functionally distinct from those tax provisions whose purpose is to raise revenue. Tax expenditure programs are comparable to entitlement programs. Therefore, tax expenditures must be analyzed in spending terms and integrated into the budgetary process to ensure fiscal accountability. In addition, tax expenditures must be audited for performance and the information must be published (with comprehensive analysis) to ensure fiscal transparency. The author analyzes the concept and definition, size, and effects of tax expenditures, as well as the fiscal accountability and transparency of tax expenditure spending. In short, tax expenditures affect (1) the budget balance, (2) budget prioritization in allocation, (3) the effectiveness and efficiency of fiscal resources, and (4) the scope for abuse by taxpayers, government officials and legislators. While reviewing the current practices in tax expenditures against the requirements of fiscal accountability and transparency, she finds that this fiscal area must be strengthened. The author sketches four building blocks to strengthen tax expenditures toward fiscal accountability and transparency, based on the literature developed by Surry and McDaniel, the practices from industrial and developing countries, the Campos and Pradhan fiscal accountability model, and the International Monetary Fund's fiscal transparency code. The author argues that normative/benchmark tax structure, a revenue-raising component of the tax system, should be formalized. The normative/benchmark tax structure should be legally defined in the tax law and should be transparent. The tax receipts from this normative/benchmark tax structure should be quantified and published. Presently, many countries could publish imputed tax revenue from normative/benchmark tax structures because such data is available. Only if imputed tax revenue is published in the same way as the other budget components-tax revenue received, tax expenditures, direct expenditures, and fiscal balance-will a budget system be truly transparent in terms of revenue-raising activities and expenditure activities. In addition, when the tax revenue-raising activity is formalized, the inherent spending nature of tax expenditures is further exposed. Therefore, tax expenditures should be added to direct expenditures forming total government expenditures. Furthermore, the conventional conc...
Author: International Monetary Fund. Fiscal Affairs Dept. Publisher: International Monetary Fund ISBN: 1498312748 Category : Business & Economics Languages : en Pages : 76
Book Description
This Fiscal Transparency Evaluation report highlights that Uzbekistan is embarking on a comprehensive reform program to strengthen public financial management and fiscal transparency. Wide-ranging reforms to improve the coverage, reliability, quality, and accessibility of fiscal reports are being developed and implemented, and some good progress already made. This assessment of fiscal transparency practices has been undertaken to support the government’s efforts to increase transparency by identifying priority areas for reform. An evaluation of practices against the IMF’s Fiscal Transparency Code (the Code) finds that tangible gains have been made over 2017 and 2018. In several areas where Uzbekistan’s practices do not currently meet the basic standard required under the Code, quick progress can be made. The report also provides a more detailed evaluation of Uzbekistan’s fiscal transparency practices and recommended reform priorities. Strengthening legislative oversight of the state budget with a view to reducing the extent to which in-year changes can be made to aggregate expenditures without prior parliamentary approval.
Author: Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
In particular, the report highlights the forward to working with the Office of the Auditor importance of the reporting of tax expenditures to General to support the professional debate in Canada. [...] We agree Deputy Minister that in the absence of any standard or requirement Ministry of Finance Auditor General of British Columbia | October 2018 | Understanding Tax Expenditures 6 UNDERSTANDING TAX EXPENDITURES Introduction The purpose of this report is to highlight the significance of tax expenditures in the context of overall provincial spending. [...] Because the tax expenditure reporting Auditor General of British Columbia | October 2018 | Understanding Tax Expenditures 10 UNDERSTANDING TAx ExpENDITURES is actuals for the prior year, rather than forecasts for the upcoming year, tax expenditure reporting does not TAx ExpENDITURE REpORTING: align with the budget. [...] These sector disclosures highlight the high-level policy Appendix C shows B. C.'s tax expenditure reporting for objectives of the tax expenditures and help legislators 1998/99, when tax expenditures were first presented and other users compare the cost of tax expenditures by tax type and by sector. [...] The OECD Best Practices for Budget Transparency recommends the inclusion of the estimated costs of tax Eight of 10 jurisdictions disclosed tax expenditures and a discussion of tax expenditures and expenditures in a stand-alone document.
Author: Asim Dio
Author: Asim Dio
Author: International Monetary Fund. Fiscal Affairs Dept.
Author: Hana Polackova Brixi
Author: Swift
Author: Mr.J. D. Craig
Author: Mr.Jack Diamond
Author: International Monetary Fund. Fiscal Affairs Dept.
Author: Zhicheng Li Swift
Author: International Monetary Fund. Fiscal Affairs Dept.
Author: