RAJ REPORT

Should Gavin King and Rob Pyne be debating —— Why Horizontal Fiscal Imbalance is not be applied by the Queensland State Grant commission ——————————-The+ premise+ underlying+ this+ goal+ is+ worth+ noting+ at+ the+ outset.+ It+ is+ that+ some+ jurisdictions+ are+ as+ a+ factual+ matter+ disadvantaged+ relative+ to+ others+ in+ ways+that+ prevent+ them+ from+achieving+living+standards+ (and+associated+levels+of+provision+of+ public+services)+comparable+to+those+achieved+in+more+fortunate+jurisdictions.+From+ there,+it+is+an+easy+step+to+suggest+that+it+is+part+of+the+notion+of+nationhood+that+the+ more+ fortunate+ jurisdictions+ should+ aid+ those+ that+ are+ less+ well+ off,+ much+ as+ assistance+would+occur+within+a+family.

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In+principle,+the+objective+of+the+current+arrangement+is+to+compensate+jurisdictions+
for+ demographic,+ economic,+ social+and+ geographic+disadvantages+ over+ which+ they+
have+ no+ control+ and+ which+ would+ otherwise+ render+ them+ incapable+ of+ providing,+
with+reasonable+levels+of+efficiency,+a+standard+of+public+services+comparable+to+that+
which+other+jurisdictions+can+and+do+provide.1
++
+
The+ premise+ underlying+ this+ goal+ is+ worth+ noting+ at+ the+ outset.+ It+ is+ that+ some+
jurisdictions+ are+ as+ a+ factual+ matter+ disadvantaged+ relative+ to+ others+ in+ ways+that+
prevent+ them+ from+achieving+living+standards+ (and+associated+levels+of+provision+of+
public+services)+comparable+to+those+achieved+in+more+fortunate+jurisdictions.+From+
there,+it+is+an+easy+step+to+suggest+that+it+is+part+of+the+notion+of+nationhood+that+the+
more+ fortunate+ jurisdictions+ should+ aid+ those+ that+ are+ less+ well+ off,+ much+ as+
assistance+would+occur+within+a+family.

 

 

Reflections+on+Fiscal+Equalisation+in+Australia+ Henry+Ergas+and+Jonathan+Pincus*
+

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