Fiscal Decentralisation & Local Finance

How a country organizes its finances, forms the basis for how local authorities govern their cities, towns and villages. Through fiscal decentralization, local governments have more authority to decide how and where to spend their resources. This enables them to be more responsive to citizens’ needs.

For successful decentralization, national governments need to design and supervise clear fiscal arrangements that support local service delivery. At the same time, local authorities are challenged to strengthen their financial capacities and use their limited resources in an effective and efficient way.

In this course, we will discuss the assignment of expenditure responsibilities to local authorities, intergovernmental transfers and local revenue sources. Moreover, we will address principles of financial accountability and transparency, and exchange examples of inclusive and participatory budgeting. Finally, we will zoom in on financial management at the local level and local tax systems.