Intergovernmental Exercise Example

Intergovernmental Exercise Example Intergovernmental Exercise – Essay Example Intergovernmental Finance Exercise Type A grant The origin of the tax is identified as personal income taxes, corporate income taxes, generalsales taxes and taxes on alcoholic beverages. The allocation of the specified share is identified as the population and the effort undertaken towards paying of the tax. 2. Type G grant This is because the decision is to assist provincial governments hence making it an ad hoc decision without a clear strategy. The cost put towards the â€Å"assistance† has no specified origin or clarity in the amount that is sent out. However, it is significant to tell between it from type H grant since this assistance is done annually. 3. Type H grant The situation falls under type H grant since the response to the situation at hand is ad hoc and the means of assistance are also unplanned. The duration through which this assistance will be carried out is undetermined too. It is also unknown what amount of assistance will be required. 4. Type F grant This is a type F grant because the decision to assist is based on the formula/determination of areas with highest poverty and infant mortality rates and substandard housing. It is differentiated from grant B because the method of assistance is not specified. 5. Type F grant The amount of assistance is not specified (only referred to as a portion of the tax revenue)and the assistance is partial based on the expenditure needs. The method used to determine the assistance is formula based since the distribution is determined by how extra ordinary the needs in expenditure are and on an equal per capita basis grant basis. The decision to give this assistance is also ad hoc. 6. Type B grant The origin of the tax is VAT and the tax distributed is specific. The tax is distributed on a formula based method that is 75% of it is given on the basis of an equal per capita perspective. The rest is given to states that have a below average tax capacity. The fact that it is accounted for tax and distributed by formula makes it a type B grant. 7. Type G grant The government provides reimbursement that is unspecified through an unplanned means. This makes this situation a type G grant. 8. Type H grant The provision of the income tax is annual though the share allocated is not specified (Ad hoc) and the method used to allocate these funds is also unclear (Ad hoc). This makes the situation a type H grant. 9. Type G grant The government repays the local government that is affected by the loss incurred in paying its fiscal need. This is an unplanned decision which pays for approved expenditures which are indispensable public requirements such as learning, public protection and transportation. That gives the basis of the formula used in the assistance hence making it a type G grant. 10. Type K grant The assistance is made as a reimbursement of an approved government project. This automatically qualifies it to be a type K grant. Bibliography Bahl, Roy and Johannes F. Linn. Intergovernmental Finance. New York: Oxford University Press, 1992.