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Financing decentralization
- Source: CEPAL Review, Volume 1993, Issue 50, Aug 1993, p. 109 - 126
- Spanish
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- 09 Aug 1993
Abstract
The financing of a State’s sub-national levels of government, in federal and other systems alike, is an instrument of decentralization; first, each State has to decide what area of responsibility to assign to each governmental level and then it must design a suitable financing mechanism. If these sub-national governments’ degrees of fiscal and administrative autonomy are not kept in alignment, then eventually the initiative may fait as the bodies at these levels gradually lose decision-making power within their sphere of responsibility.
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