Fiscal Federalism 2022

Making Decentralisation Work

image of Fiscal Federalism 2022

Fiscal Federalism 2022 surveys recent trends and policies in intergovernmental fiscal relations and subnational government. Accessible and easy-to-read chapters provide insight into: good practices in fiscal federalism; the design of fiscal equalisation systems; measuring subnational tax and spending autonomy; promoting public sector performance across levels of government; digitalisation challenges and opportunities; the role of subnational accounting and insolvency frameworks; funding and financing of local government public investment; and early lessons from the COVID-19 crisis for intergovernmental fiscal relations.



Fiscal federalism refers to the distribution of taxation and spending powers across levels of government, and is the focus of the OECD’s Network on Fiscal Relations across Levels of Government. Through decentralisation, governments can bring public services closer to households and firms, allowing for better addressing local preferences. However, unless properly designed, decentralisation can also make intergovernmental fiscal frameworks more complex and risk reinforcing interregional inequalities. This book synthesises the work of the Network over the past decade and a half, on how to balance the policy trade-offs inherent in intergovernmental fiscal relations, making use of its novel analytical results.


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error