Fiscal decentralisation in emerging economies
Subtitle: governance issues
By: edited by Kiichiro Fukasaku and Luiz R. de Mello Jr.
Contributors: Fukasaku, Kiichiro.; Mello, Luiz R. de.; Organisation for Economic Co-operation and Development. Development Centre.
Series: Development Centre seminars
Publisher: Developpement Centre of the Organisation for Economic Co-operation and Development
Published: 1999
Place of publication: Paris, France
Language: eng
Number of pages: 245
Subjects: Fiscal policy -- Latin America -- Congresses.; Intergovernmental fiscal relations -- Latin America -- Congresses.; Decentralization in government -- Latin America -- Congresses.
Genres: Congresses.
Description: This collection of experiences of fiscal decentralisation across a wide range of OECD-Member and non-member economies reveals lessons which are equally of relevance to both groups of countries. A major finding is that fiscal decentralisation is often confused in the latter group of countries with the removal of central-government control over subnational finances. This is a mistake; it may lead to fiscal irresponsibility on the part of local authorities, deteriorating fiscal positions at both levels, and high costs due to duplication of fiscal institutions. The book also finds that insufficient attention has been given to local revenue generation, as opposed to intergovernmental transfers.The issue of fiscal decentralisation in emerging economies is particularly important, because it arises, in part, from a desire to enhance democracy and local accountability. However, the devolution of responsibilities must take place in an atmosphere of transparency, where the local expertise exists to manage budgeting. Serious consideration must be given to revenue sourcing and effective expenditure control. Finally, local spending must match available revenues without becoming an additional strain on central government resources.<!-- -->
Notes: Includes bibliographical references.
"Contains contributions from participants in the conference on "Decentralisation, Intergovernmental Fiscal Relations and Macroeconomic Governance", organised jointly by the OECD Development Centre and ESAF, the School of Tax Administration of the Brazilian Ministry of Finance ... held in Brasilia, on 16-17 June 1997."