Synthesising Good practices in Fiscal Federalism: Key recommendations from 15 years of country surveys
Kass Forman, Sean Dougherty and Hansjörg Blöchliger : 2020
The design of intergovernmental fiscal relations can help to ensure that tax and spending powers are assigned in a way to promote sustainable and inclusive economic growth. Decentralisation can enable sub-central governments to provide better public services for households and firms, while it can also make intergovernmental frameworks more complex, harming equity. The challenges of fiscal federalism are multi-faceted and involve difficult trade-offs. The paper identifies a range of good practices on the design of country policies and institutions related to strengthening fiscal capacity and delineating responsibilities across levels of government and improving inter-governmental coordination.
Source: OECD Publishing