## Fiscal Decentralization and Public Subnational Financial Management in Peru

_IMF Working Papers, May 1, 2006_

## Source details

**Canonical URL:** [Fiscal Decentralization and Public Subnational Financial Management in Peru](https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-decentralization-and-public-subnational-financial-management-in-peru-19145)

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## Bibliographic details
- Authors: Ehtisham Ahmad, Mercedes Garcia-Escribano
- Published: May 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451863802.001

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### Summary
- There is increasing interest in fiscal decentralization in Peru as a mechanism to generate more involved decision-making at the subnational level.
- This interest is tempered with a continuing emphasis on overall fiscal stability.
- The paper suggests that a substantial work agenda is needed to extend the decentralization process with greater transparency.

### Findings
- Considerable work needs to be undertaken to define more clearly expenditure responsibilities and financing mechanisms that increase local accountability.
- A more transparent fiscal transfer system is needed.
- Clarity in expenditure management at all levels of government is required.

### Policy recommendations and agenda items
- Define more clearly expenditure responsibilities between central and subnational governments.
- Establish financing mechanisms that increase local accountability.
- Develop and implement a more transparent fiscal transfer system.
- Improve clarity and transparency in expenditure management at all levels of government.
- Pursue a substantial work program to extend the decentralization process with greater transparency.

### Context and metadata
- Authors: Ehtisham Ahmad, Mercedes Garcia-Escribano
- Date: May 1, 2006
- Series: Working Paper No. 2006/120
- Issue: 120
- Volume: 2006
- Pages: 25
- DOI: https://doi.org/10.5089/9781451863802.001
- Stock No: WPIEA2006120
- ISBN: 9781451863802
- ISSN: 1018-5941
- Subject: Budget classification, Expenditure, Public debt, Public financial management (PFM), Revenue administration
- Keywords: cash balance, government, local government, Subnational government, tailoring government program, WP

*IMF Working Paper: "Fiscal Decentralization and Public Subnational Financial Management in Peru" (Ehtisham Ahmad and Mercedes Garcia-Escribano), May 1, 2006.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/fiscal-decentralization-and-public-subnational-financial-management-in-peru-19145_