Budgeting and Rebudgeting in Local Governments: Siamese Twins?

Pessina, Eugenio Anessi; Sicilia, Mariafrancesca; Steccolini, Ileana

doi:10.1111/j.1540-6210.2012.02590.x

Cited by 58 publications

(68 citation statements)

References 32 publications

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“…On the contrary, the crises might represent a good opportunity for managers as well as mayors for adopting and justifying radical changes in municipalities that tend to have a short term or a buffering approach to financial management. A view of budgeting not as ‘one‐shot’, but as a year‐long process with continuous monitoring, assessment, adjustment (Anessi Pessina et al., ) would also facilitate the adoption of a medium‐to‐long term perspective.…”

Section: Discussionmentioning

confidence: 99%

“…To ensure comparison across municipalities, we normalized the deficit/surplus by the total operating revenues. In the literature and in current auditing practices this ratio is generally considered acceptable within the −3%/+5% range as an indicator of a steady ‘balanced budget’ (Bellesia, ; Anessi Pessina et al, ; and Ministero dell'Interno, ).…”

Section: Methodsmentioning

confidence: 99%

“…Similarly, by holding doubtful commitments to be paid in the balance, municipalities can postpone the recognition of surplus, making it available subsequently through the write off of commitments. The annual report of municipalities must also include a balance sheet and an income statement on an accrual basis but these documents have been shown to be unreliable due to the limited role they play in decision making processes (see also Anessi Pessina and Steccolini, ; Anessi Pessina et al., ; and Liguori and Steccolini, ). Municipalities’ budgets and annual reports are audited by an in‐house Board of Auditors (‘Collegio dei Revisori’) appointed by the Council.…”

Section: The Setting Before the Crisis: Italy As A Paradigmatic Casementioning

confidence: 99%

See 2 more Smart Citations

Italian Municipalities and the Fiscal Crisis: Four Strategies for Muddling Through

Barbera¹,

Guarini²,

Steccolini

2016

Financ Acc Manag

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Through a multiple case study of eight Italian municipalities, our paper identifies the main shocks perceived by the local management as a consequence of the recent fiscal crisis and the related organizational responses. The analysis roots current responses in longer-term municipal financial management and strategies. Even in a context where the shocks are described and identified as being much the same, there is not a single pattern of response, but (at least) four different ways of reacting to shocks can be identified: reorientation, buffering, continuous adjustment, avoiding problems and catching opportunities.

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Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: The Setting Before the Crisis: Italy As A Paradigmatic Casementioning

confidence: 99%

See 1 more Smart Citation

Italian Municipalities and the Fiscal Crisis: Four Strategies for Muddling Through

Barbera¹,

Guarini²,

Steccolini

2016

Financ Acc Manag

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“…Menurut Anessi-Pessina, et al (2012), anggaran murni dan anggaran perubahan merupakan dua proses yang tidak dapat dipisahkan. Oleh karena itu, peran legislatif dalam perumusan anggaran murni dan anggaran perubahan pada prinsipnya sama saja, yakni mereka memiliki self-interest yang dapat berujung pada pemenuhan janji kepada pemilih (voters) dan pemenuhan kebutuhan finansial (economic incentives).…”

Section: Hasil Dan Pembahasanunclassified

Pengaruh Fiscal Stress Dan Legislature Size Terhadap Expenditure Change Pada Kabupaten/Kota Di Sumatera Utara

Junita¹,

Abdullah²

2017

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Abstract:The purpose of this study was to examine the effect of fiscal pressure (fiscal stress) and the size of the legislature (Legislature size) to change the budget at the district and city in North Sumatra. Results obtained from the model predictions showed that statistically, fiscal pressures negatively affect regional budget changes, while the magnitude of the effect is the opposite legislature. These results suggest that changes in the budget is very important in responding to the magnitude of the reception and the number of board members reflect the interests that must be accommodated in the adjustment state budget.Keywords: fiscal pressure, the amount of legislative changes to the budget, shopping areas, local governments, the budget, the agency problem, pork barrel, the aspiration funds.Abstrak Tujuan penelitian ini adalah untuk menguji pengaruh tekanan fiskal (fiscal stress) dan besaran legislatif (legislature size) terhadap perubahan anggaran belanja pada pemerintah kabupaten dan kota di Sumatera Utara. Hasil yang diperoleh dari model prediksi menunjukkan bahwa secara statistik, tekanan fiskal berpengaruh negatif terhadap perubahan anggaran belanja daerah, sementara pengaruh besaran legislatur justru sebaliknya. Hasil ini menunjukkan bahwa perubahan anggaran sangat penting dalam merespon besaran penerimaan dan jumlah anggota dewan mencerminkan kepentingan yang harus diakomodir dalam penyesuaian anggaran belanja daerah.Kata kunci: tekanan fiskal, besaran legislatif, perubahan anggaran, belanja daerah, pemerintah daerah, APBD, masalah keagenan, pork barrel, dana aspirasi. PENDAHULUANSeperti halnya proses penyusunan anggaran pendapatan dan belanja daerah (APBD), proses perubahan anggaran merupakan isu penting dalam pengelolaan keuangan daerah setelah diterapkannya otonomi daerah atau desentralisasi fiskal di Indonesia (Abdullah Nazry, 2014). Praktik politik dalam penetapan APBD dengan peraturan daerah (qanun) membutuhkan kompromi di antara budget actors yang memiliki preferensi berbeda. Berbagai aspek dapat mempengaruhi pengambilan keputusan pengalokasian anggaran pada pemerintahan daerah, terutama oleh legislatif (Abdullah, 2012) dan tekanan fiskal (fiscal stress) (Chapman, 2009).Penyusunan rencana kerja yang akan dibiayai dari APBD memiliki rentang waktu cukup panjang, yang dilakukan setahun sebelum pelaksanaannya, sehingga membutuhkan penyesuaian atau revisi pada saat realisasinya. Revisi anggaran pada tahun berjalan

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“…However, legislators prepare government budgets at different levels of detail and leave the allocation decision of some funds to the executive authority (OECD, 2014;Tommasi, 2007). In addition, government budgets are revised in a year-for example, by transferring funds between the spending items-as political priorities change (Anessi-Pessina, Sicilia, & Steccolini, 2012. This type of flexibility can have important effects on the size and composition of government spending and its efficiency implications.…”

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confidence: 99%

Budget flexibility, government spending, and welfare

Yaşar

2018

J Public Economic Theory

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A growing literature in economics provides a theory of budget negotiations relying on Baron and Ferejohn's legislative‐bargaining approach. This literature assumes that legislators decide on all dimensions of government spending once and for all in a period during budget negotiations. However, legislators leave allocation decision of some funds to the executive authority and let it adjust government spending according to changing priorities in a year under certain restrictions. In this paper, the author develops a legislative‐bargaining model to investigate the effects of budget flexibility on government spending and welfare. In addition, he analyzes how legislators choose the level of flexibility. He shows that, if legislators decide on all dimensions of government spending, high polarization leads to greater government spending. However, if the executive authority allocates government resources, high polarization leads to lower government spending. Besides, when the executive authority allocates government resources under high polarization, legislators cannot use their political power to induce overprovision of their preferred public good. When legislators can choose the level of budget flexibility, if the probability of polarization is high they prefer to control all dimensions of government spending. The author shows that budget flexibility benefits society only under high probability of polarization.

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Budgeting and Rebudgeting in Local Governments: Siamese Twins?

Cited by 58 publications

References 32 publications

Italian Municipalities and the Fiscal Crisis: Four Strategies for Muddling Through

Italian Municipalities and the Fiscal Crisis: Four Strategies for Muddling Through

Pengaruh Fiscal Stress Dan Legislature Size Terhadap Expenditure Change Pada Kabupaten/Kota Di Sumatera Utara

Budget flexibility, government spending, and welfare

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