Fiscal Federalism 2014

Making Decentralisation Work

image of Fiscal Federalism 2014

This book offers an overview on recent trends and policies in intergovernmental fiscal relations and sub-central government. Accessible chapters provide: insight into how sub-central governments are managing ongoing consolidation, as well as how fiscal decentralisation fosters economic growth and educational attainment; a balanced account of the virtues and limits of tax competition between jurisdictions; an overview of fiscal equalisation policy; and some fascinating background information about past tax and public service reforms.



Executive summary

The OECD counts around 140 000 elected sub-central governments (SCGs). By providing an array of services and transfers and by taxing residents and firms, SCGs influence economic development and the well-being of citizens. The decentralisation trend of the last 20 years has made SCGs more powerful and more likely to affect the course of a country. The economic crisis that hit in 2008 left a scar on most jurisdictions, and many still struggle to balance their budgets. While intergovernmental fiscal frameworks vary widely between countries, the pressure to rein in deficits and to improve the efficiency of public services and taxation has become almost universal.


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