Munich Personal RePEc Archive

Economía pública municipal

Villalobos, Jose Antonio (2020): Economía pública municipal.

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Abstract

The issue of the municipal public economy has to be studied, since the municipality is the area of government that we have closest to our home and is the one we first resort to request a public service, such as those of first need: water, clean, public safety and many more. In terms of effectiveness, it is excessively complex for the central or state government to know and regulate a detailed set of social, political and economic variables of local communities, so I affirm that municipalities have the status of proximity or immediate contact with the population and can more easily incorporate their inhabitants into economic development tasks of local expression. In this work I intend to create a strong and solid theoretical-conceptual framework of the municipal public economy, so in the first two chapters I present legal-political and conceptual elements of the municipality and the structure of municipal public finances. This frame of reference should enable me to analyse the public revenue of the municipalities in a certain way. In 35 years of applications of the new National Tax Coordination System in Mexico, the shares and federal contributions received by all country municipalities, relative to the total national public revenue represented 2.6% in 1983, while in 2018 they amounted to 6.5%, thus appreciating a sustainable progress of the localities in the participation of taxes at the national level. The federal entities earned the most in those 35 years with the National Tax Coordination System, as the federal shares and contributions they received in relation to total national government revenue, ac-counted for 12.5% in 1983 and in 2018 they accounted for 27.4%. They lost nothing in the distribution of the cake in 35 years and if they earned more than double in their income the 31 federal entities of the country. Property tax or property tax is the fundamental basis of municipal public finances, however in 2018 it represented only 0.33% of GDP in the country, while Argentina raises 1.46% of GDP and Chile raises 1.17% of GDP. These two countries are in a developmental condition similar to Mexico, because if we talk about OECD countries the figures go even higher.

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