## Making Fiscal Decentralization Work: Cross-Country Experiences

_Occasional Papers, October 6, 2010_

## Source details

**Canonical URL:** [Making Fiscal Decentralization Work: Cross-Country Experiences](https://www.imf.org/en/publications/occasional-papers/issues/2016/12/31/making-fiscal-decentralization-work-cross-country-experiences-23731)

## Other formats

- [Markdown version](/en/publications/occasional-papers/issues/2016/12/31/making-fiscal-decentralization-work-cross-country-experiences-23731/index.md)
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## Bibliographic details
- Authors: Annalisa Fedelino
- Published: October 6, 2010
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781589069855.084

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### Overview
- The book addresses what makes fiscal decentralization work for policymakers worldwide.
- Draws on relevant literature and IMF policy and technical advice provided to a wide range of member countries.
- Discusses key factors that help make decentralization sustainable, efficient, and equitable from a macroeconomic perspective.
- Focuses on institutional reforms and their appropriate sequencing suited to different country circumstances.

### Key focus areas
- Revenue and expenditure assignments to different levels of government.
- Design of intergovernmental transfers.
- Public financial management (PFM) systems.

### Findings and substantive points
- Decentralization’s success depends on institutional design choices tailored to country-specific circumstances.
- Sustainable, efficient, and equitable outcomes require coherent assignment of revenues and expenditures, well-designed transfer systems, and robust PFM frameworks.
- Appropriate sequencing of reforms is critical to making decentralization work.

### Policy implications and recommendations
- Align revenue and expenditure assignments with subnational governments’ functional responsibilities.
- Design intergovernmental transfers to address fiscal disparities while preserving incentives for efficiency.
- Strengthen public financial management systems at all levels of government to support accountability and macro-fiscal stability.
- Sequence institutional reforms to build capacity and avoid fiscal risks during the decentralization process.

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_Source: https://www.imf.org/en/publications/occasional-papers/issues/2016/12/31/making-fiscal-decentralization-work-cross-country-experiences-23731_