2007 Fiscal Year Final Research Report Summary
Local budget after German unification-the budgetary consequence of unification and the revenue gap between west and east-
| Project/Area Number |
16530213
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Kanazawa University (2006-2007)
Kyoto Prefectural University (2004-2005) |
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Principal Investigator |
TAKEDA Kimiko Kanazawa University, Faculty of Economics, Professor (80212025)
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| Project Period (FY) |
2004 – 2007
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| Keywords | German reunification / solidarity pact II / local budget in Germany / east-west gap / Hartz IV reform / socially integrative city / fiscal equalization / supplementary federal funding |
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| Research Abstract |
This research aimed to analyze the west-east gap in local budget at this time, and to examine the reality of abolition of additional supplementary federal funding for the eastern states and municipalities that scheduled until 2019. The results are as follows.
1) Through the revenue sharing between the federal states and the supplementary federal funding, the amount of fiscal transfer is still increasing. It will take more years to bridge the budgetary gap, because the tax revenue is far below the level of western federal states in eastern states. It is difficult to imagine, therefore, that there are no fiscal transfer to eastern federal states and municipalities after 2020.
2)"Solidarity Pact II (as of 2005)" however implies that the west-east gap brought about by reunification should be merged into the difference in general in the future. In fact the budgets of the stronger federal states in the east are catching up with the weaker federal states in the west, and socio- economic problem of regions with weak industrial structure in western states also should not be neglect. We can find such an implication in the 'Basket II" of Solidarity Pact II, where the target of programs and grants moves from eastern area to weaker structured area in overall Germany.
3) "Hartz IV" reform introduced in 2005 has brought an increasing fiscal burden to the eastern municipality with the higher unemployment. There are peculiar socio-economic handicaps due to negative assets from divided era, namely mismatching in labor market, absence of civil society, decrepitated infrastructure and so on. Leaving these problems can retard the economic development of eastern area. Activities rooted in the local community, as can see in many practices of "Soziale Stadt"(socially integrative city) program, are expected to resolve these problems.
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[Journal Article] NPM-reform in Germany2005
Author(s)
Takeda, Kimiko
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Journal Title
Okada, Akihiro ed., Investigating ATM. Comparison between Japan and European Countries(Jichitaikenkyusha)
Pages: 197-227
Description
「研究成果報告書概要(欧文)」より
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