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Europe > Norway

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Cover IMF Working Papers
Narrowing Vertical Fiscal Imbalances in Four European Countries
Ms. Izabela Karpowicz
This paper describes the institutional changes that have induced a decline in the vertical fiscal imbalance (VFI) - defined as the share of sub-national own spending not financed through own revenues - in four European countries: Belgium, Italy, Norway, and Spain. The decline in VFI was achieved through progressive devolution of revenues to sub-national governments in Belgium, Italy, and Spain, while re-centralization of health sector expenditures was the cause of the decline in the VFI in Norway.
Keywords:
WP; government; central government; government autonomy; aggregate VFI.; Federalism; decentralization; fiscal balance; vertical fiscal imbalance; local governments; aggregate VFI; VFI indicator; AC status; regime ACs; revenue devolution; Fiscal stance; Health care; Health care spending; Europe; Northern Europe