Public Administration Department
Fiscal Governance Course
Prof.: Francis Amagoh
Orazalyeva Asel ID: 20102446
Sattay Tolegen ID: 20090436
Sheriyazdan Ruslan ID: 20081215
Turarova Aizhan ID: 20091727
Zhanatkanova Meruyert ID: 20090805
The article by IMF is devoted to the financial crisis in Italy and the fiscal decline. There are statistical data, graphs and other information which describes the consequences and outcomes of the crisis to the country. Concerning the Conditions that contribute to a locality’s fiscal decline we identified the following issues: 1. Economic Vitality is declining.
a. Appraised value of real estate per capita is declining.
i. distribution of country concentrations of commercial real estate and institutional-grade commercial real estate is heavily concentrated in a small number of countries. ii. Also, as the key factor for investors who buy real estate s difference between GDP growth in local currency and US dollar, we can say that the difference is too little, which means that the number of investors also decreased sharply. b. Number and Value of building permits are declining.
i. Italy’s construction industry remains depressed. The Italian construction industry association (ANCE) reported that estimates indicate a 4% decrease in 2011 and 3.2 % in 2012.
ii. the factors include the reduced credit supply to companies and delays in payment by public bodies. c. Total population is declining - it is a well-known fact that the population of Italy is in list of top countries with aged population in Europe. d. Income per capita is declining - Italy is on 43-th place according to World Bank. 2. Financial Independence and Flexibility is being lost. a. Growing Debt Burden. So, Italy’s public debt reached a new high in the first month of 2012. Overall debt reached an unparalleled 1.94 trillion euro in January. Also, statistics revealed that Italy’s debt load is equivalent o 120.1% of the country’s annual gross domestic product. 3. Municipal Productivity Declining
a. Municipal expenditures per capita increasing. Concerning the productivity of government we see that government spends about 16% of budget o interest payments. b. Also the government of Berlusconi moved away, and the new government still has some uncertainty on what to do with the crisis.
4. The Large amounts of current costs are being deferred to the future. The government is undertaking the programs by which they cut the social programs, and especially defer the pension liabilities. Also, he shadow economy in Italy is increased significantly and according to the article is 27%
Assume the following personnel information about the Almaty Fire Department for Fiscal Year1:
Employee Grade Number in Grade Salary Chief 1 $80,000 Shift Commander 3 $50,000 Each Firefighter 1 15 $35,000 Each Firefighter 2 30 $27,000 Each Clerical 3 $15,000 Each
For Fiscal Year 1, the City and the employees each pay social tax of 8 percent of all salary up to $70,000 per employee. The City pays a part of the cost of health insurance for each employee of about $90 a month. The pension system is financed by a city payment of 20% of employee’s salary and employee payment of 5% of employee salary. Employees also receive an annual allowance of $700 for uniforms. Estimate the city’s full cost of fire department labor during fiscal year 1 by separating the cost into salary and fringe benefit...