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HomeHomework Helppolitical-scienceFiscal Decentralization

Fiscal Decentralization

Fiscal decentralization and local governance refer to the transfer of financial authority and responsibilities from central governments to local governments, enabling local entities to manage their own resources and make decisions that reflect the specific needs and priorities of their communities. This process aims to enhance accountability, improve public service delivery, and promote local development through increased autonomy in fiscal management.

intermediate
3 hours
Political Science
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Overview

Fiscal decentralization is a crucial aspect of modern governance that allows local governments to take charge of their financial responsibilities. By managing their own revenues and expenditures, local authorities can tailor services to meet the specific needs of their communities. This process not ...

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Key Terms

Fiscal Decentralization
The transfer of financial responsibilities from central to local governments.

Example: A city council managing its own budget.

Local Revenue
Funds generated by local governments through taxes and fees.

Example: Property taxes collected by a municipality.

Intergovernmental Transfers
Funds transferred from central to local governments to support local services.

Example: Grants provided for local education.

Public Expenditure
Spending by government on public services and infrastructure.

Example: Funding for local road maintenance.

Accountability
The obligation of local governments to report and justify their financial decisions.

Example: Public hearings on budget allocations.

Fiscal Equalization
Mechanisms to balance financial resources among different regions.

Example: Redistribution of funds to poorer areas.

Related Topics

Public Finance
Study of how governments manage their revenues and expenditures.
intermediate
Local Governance
Exploration of how local governments operate and make decisions.
intermediate
Community Development
Focus on improving the quality of life in local areas through various initiatives.
intermediate

Key Concepts

Local Revenue GenerationIntergovernmental TransfersPublic Expenditure ManagementAccountability in Governance