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Specific and general grants in Sweden

Specific and general grants in Sweden. what has occurred after the grant reform in the 1990’s?. Questions for my paper. Has a shift has taken place with respect to the use of general and specific purpose grants allocated to local governments in Sweden? Specifically:

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Specific and general grants in Sweden

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  1. Specific and general grants in Sweden what has occurred after the grant reform in the 1990’s?

  2. Questions for my paper • Has a shift has taken place with respect to the use of general and specific purpose grants allocated to local governments in Sweden? • Specifically: • Have the specific purpose grants increased? • How has the balance (policy-mix) between general and specific purpose grants evolved over time?

  3. Grant reform of 1990’s • Emphasis on general grants • Though specific grants still in place • 1993 municipalities • 1996 county councils

  4. Specific grants before 1993 • Equalise service levels and • Secure an element of basic security and fairness to citizens, irrespective of their place of living. • Specific grants expanded the scope and the size of the public sector = intented impact.

  5. Arguments for a general grant system • Economic efficiency. • Better equalisation of costs and income. • Enhance local democracy, accountability, flexibility and innovation. • 18 specific grants were abolished and used to finance the general grants. • Financial crisis played into the decision.

  6. Grants in the early 1990’s

  7. Criteria for specific grants that should remain • Payments for services undertaken on behalf of the state, • for investment and development, • existed due to labour market considerations, • for public housing, • were paid on equal terms to local governments and other organisations and • for renewal and development projects.

  8. Specific purpose grants 1990-1993

  9. Specific grants have increased

  10. Specific and general grants 2003-2008

  11. Specific purpose grants 2003-2008

  12. Grants as proportion of local government income

  13. Conclusions • The grant reform of the 1990’s had impact on the policy mix between conditional and general grants. • Speficic purpose grants fell from 17 % of local governments income in 1992 to 7 % in 1993.

  14. The number of conditional grants grew between 1993 and 2001. • But declined slightly thereafter. • Especially grants intented for a particular group of municipalities and county councils. • Could be harmful to equalisation and economic efficiency.

  15. The last five years • Grants from the central government accounted for 15 % of local government income in 2008. • Specific purpose grants have grown in size, and to a certain extent in numbers, but their significance as a source of finance has in fact declined of lated. • Specific purpose grants represent app. 7-8 % of local governments income (2003-2008). • General grants slightly bigger.

  16. The composition of the specific grants has changed • In the last five years, specific purpose grants have grown more important for county councils • Specific grants have declined in significance for the municipalities compared to the early 1990’s

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