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These country notes detail the fiscal situation to date (2011), the consolidation needs, and the commitments and intentions of governments in 30 OECD countries in the aftermath of the economic crisis.
This review addresses the needs of national and regional governments for greater clarity on how to strengthen the innovation capacity of regions to boost national performance. It is part of wider OECD work on regional development and supports the OECD Innovation Strategy.
Individual elements in the Belgian tax system affect the growth process through different channels and to a varying degree.
The paper discusses the current state of fiscal relations across levels of government in Belgium and how it has developed over time.
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The Belgian government delegates some of its tasks to semi-public bodies in what is known as functional devolution. There are 15 public social security institutions in the sectors of employment and unemployment, pensions, family allowances, health and disability insurance.
The tax system is relying too much on relatively growth distorting taxes. Despite reforms, labour taxation continues to contribute to substantial labour market traps while corporate tax rates are relatively high. Moreover, most tax bases are narrowed by numerous exemptions and reductions.
Securing fiscal sustainability requires a reform of the fiscal federalism system. The current transfer system does not align spending and taxing responsibilities and the organisation of the federation is not promoting public spending efficiency.
Public finances are shifting further away from fiscal sustainability, emphasising the need for the reform of the fiscal policy making and strategies to deal with the costs of ageing.
This report shows that the development and provision of the next generation of user-focused services will require the maximisation of synergies between the federal, regional and community governments and local authorities in Belgium.
The review of human resource management in Belgian government is the first country review of its kind to be carried out by the OECD. The report compares the policies and practices of Belgium with those in other OECD countries, as well as those across different governments in Belgium.