TARGET GROUP | World Bank Group Staff and selected country
clients (especially from ministries of finance and central banks).
DESCRIPTION | This four-module course focuses on the financing side
of the sub-national fiscal system covering the following topics:
Module 1 - Subnational Taxation Policy
The session will focus on cutting-edge issues and challenges concerning
subnational taxation, in particular on types of subnational own
taxation (e.g., property tax, business tax), as well as those taxes that
are usually shared between the national and subnational governments
(personal income tax, corporate income tax, VAT, etc.). The session
will cover both design principles on tax policy and administration and
practical challenges based on cross-country experiences.
Module II: Fiscal Risks from Contingent Liabilities
Subnational entities often take recourse to ‘off-budget’ borrowing sources
to meet borrowing needs and finance public services. Even though ‘offbudget’,
this ‘hidden deficit’ is an incipient risk and source of budgetary
vulnerability for the subnational entity. The session will cover sources of
such risks in subnational entities and present measures to identify, monitor
and mitigate such risks, drawing upon cross-country experiences.
Module III: Subnational Debt Sustainability Framework and
Subnational Development Policy Operations (DPOs)
The session will discuss objective criteria for assessing fiscal and debt
sustainability at the sub-national (SN) level. They face many policy
and other constraints that central governments do not—e.g., rules
constraining borrowing practices, limited sources of finance, debt
and fiscal limits, limits on own revenue sources, earmarked transfers,
volatility of transfers, etc. This course aims to present a series of robust
methodologies and highly customizable approaches and tools that have
been developed and used to assess fiscal and debt sustainability in the
context of World Bank analytical work and lending operations.
Module IV: Subnational Debt and Cash Management Framework
Subnational debt and cash management have emerged as an important
public policy agenda for developing countries. This session will
present an analytic framework for subnational debt management and
country presentations from participants. In view of the importance of
liquidity management for sub-national governments, a session on cash
management highlighting the importance of cash flow forecasting and
cash balance management will also be delivered.
The course format includes presentations and hands-on case studies
with discussions on operational applications