Municipal Finances in the Corona Crisis: Effects and Reactions
Abstract The coming recession has a direct impact on municipal finances through trade tax and income tax. As a result of the advance payments during the year, the declines in local budgets are already felt in the short term. This article estimates the financial effects of Corona pandemic on municipa...
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| Format: | Article |
| Language: | deu |
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Sciendo
2020-05-01
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| Series: | Wirtschaftsdienst |
| Online Access: | https://doi.org/10.1007/s10273-020-2653-z |
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| _version_ | 1832570075126693888 |
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| author | Ronny Freier René Geißler |
| author_facet | Ronny Freier René Geißler |
| author_sort | Ronny Freier |
| collection | DOAJ |
| description | Abstract The coming recession has a direct impact on municipal finances through trade tax and income tax. As a result of the advance payments during the year, the declines in local budgets are already felt in the short term. This article estimates the financial effects of Corona pandemic on municipalities taking into account changes in the trade tax levy and regional economic strength. The states should temporarily suspend certain regulations of budgetary law in order to prevent financial blockages and pro-cyclical budgetary policies of the municipalities. In addition, they should compensate for the loss of trade tax and thus enable reliable budgeting. As the economic crisis has different effects and the municipalities have different reserves, regional differentiation of aid is appropriate. |
| format | Article |
| id | doaj-art-79bea5d28c6a474b95fc05f925844c3a |
| institution | Kabale University |
| issn | 0043-6275 1613-978X |
| language | deu |
| publishDate | 2020-05-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Wirtschaftsdienst |
| spelling | doaj-art-79bea5d28c6a474b95fc05f925844c3a2025-02-02T17:37:05ZdeuSciendoWirtschaftsdienst0043-62751613-978X2020-05-01100535636310.1007/s10273-020-2653-zMunicipal Finances in the Corona Crisis: Effects and ReactionsRonny Freier0René Geißler1Fachbereich Wirtschaft, Informatik, Recht, TH WildauKommunale Finanzen, Bertelsmann StiftungAbstract The coming recession has a direct impact on municipal finances through trade tax and income tax. As a result of the advance payments during the year, the declines in local budgets are already felt in the short term. This article estimates the financial effects of Corona pandemic on municipalities taking into account changes in the trade tax levy and regional economic strength. The states should temporarily suspend certain regulations of budgetary law in order to prevent financial blockages and pro-cyclical budgetary policies of the municipalities. In addition, they should compensate for the loss of trade tax and thus enable reliable budgeting. As the economic crisis has different effects and the municipalities have different reserves, regional differentiation of aid is appropriate.https://doi.org/10.1007/s10273-020-2653-z |
| spellingShingle | Ronny Freier René Geißler Municipal Finances in the Corona Crisis: Effects and Reactions Wirtschaftsdienst |
| title | Municipal Finances in the Corona Crisis: Effects and Reactions |
| title_full | Municipal Finances in the Corona Crisis: Effects and Reactions |
| title_fullStr | Municipal Finances in the Corona Crisis: Effects and Reactions |
| title_full_unstemmed | Municipal Finances in the Corona Crisis: Effects and Reactions |
| title_short | Municipal Finances in the Corona Crisis: Effects and Reactions |
| title_sort | municipal finances in the corona crisis effects and reactions |
| url | https://doi.org/10.1007/s10273-020-2653-z |
| work_keys_str_mv | AT ronnyfreier municipalfinancesinthecoronacrisiseffectsandreactions AT renegeißler municipalfinancesinthecoronacrisiseffectsandreactions |