Ecuador Fiscal Administration Studies. Staff Paper No. 4. The Impact of Intergovernmental Grants on Local Governments in Ecuador: A Study of FONAPAR

摘要

The level, nature, and impact of intergovernmental aid to local governments in Ecuador are the topics considered in the report. As requested, the study examines (a) the impact of FONAPAR operations on the levels and types of local government expenditures and the revenue-raising efforts of local governments, and (b) explores the revenue implications of alternative El Fondo Nucional de Participaciones distribution formula. To these ends, the levels and distribution of FONAPAR funds and other forms of intergovernmental aid are examined and models of grants impact and local revenue-raising efforts were estimated and analyzed.