commission on fiscal imbalance 合集

Although the varieties of fiscal decentralization may

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Unformatted text preview: ntral government. This is the least extensive type of administrative decentralization. 2. Delegation refers to the transfer of public policy making and administrative authority and/or responsibility for carefully spelled out tasks to institutions and organizations that are either independent or under central government's indirect control. Typically, delegation of functions is by the central ministries to semi-autonomous organizations not wholly controlled by the central government but legally accountable to it, such as state owned enterprises, public utilities, and regional planning and economic development authorities. 3. Devolution is the most extreme form of decentralization where independently established subnational governments are given the responsibility for delivery of a set of public services along with the authority to impose taxes and fees to finance services. In a devolved system, subnational governments have independent authority to raise their own revenues and to make investment decisions. It is devolution of administrative power that underlies decentralization of power on political fronts. Devolution is usually synonymous to fiscal decentralization where subnational governments have clear expenditure assignments, substantial budget autonomy, and legally recognized geographical boundaries within which they perform public functions. Although the varieties of fiscal decentralization may exist, corresponding to the degree of independent decision making exercised at the subnational level, the general description of the term fiscal decentralization encompasses the political, economic, and institutional underpinnings of intergovernmental fiscal relations, and ranges 16 Op. cit. Rondinelli (1999). 159 Commission on Fiscal Imbalance from examining the efficiency of public institutions and developing sustainable infrastructure finance, to rationalizing fiscal transfer mechanisms and supporting the social safety net (Ebel and Hotra, 1997).Therefore, a carefully designed fiscal decentralization policy should not only enhance local autonomy where subnational governments are allowed to act independently within their own sphere of competence in designing revenue and expenditure policies but also promote political accountability, economic efficiency and transparency. FIGURE 8 -Decentralization on Three Fronts F A C T O R S T H A T A F F E C T O U T C O M E Decentralization System Outcome s Political •Civil Liberties •Political Rights •Democratic Pluralistic System •Resource Mobilization •Resource Allocation •Fiscal Capacity Impact •Political Accountability •Political Transparency •Political Representation Fiscal •Fiscal Resources •Fiscal Autonomy •Fiscal Decision -making System Results •Increased Incomes •Responsive Services •Increased Productivity •Effective Services •Increased Literacy •Efficient Services •Decreased Infant Mortality •Sustainable Services Administrative • Administrative Structures and Systems •Par...
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This note was uploaded on 03/06/2013 for the course ECON 220 taught by Professor Paulo during the Spring '13 term at University of Liverpool.

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