Second Local Government Finance and Governance Reform Program - Subprograms 1 and 2: Program Completion Report

Flexibility in design. Fiscal decentralization is the process of decentralizing revenue raising and expenditure of moneys to a lower level of government while maintaining financial responsibility. The process is complex and involves major changes to the legal and regulatory framework, institutional arrangements, and human capacity. Hence, sufficient time must be allocated to program implementation. Design flexibility is also a key consideration. The use of the program cluster approach gave the Second Local Government Finance and Governance Reform Program (LGFGR2) implementers the opportunity to refine the policy actions proposed for succeeding subprograms to reflect the government's achievements, changes in the policy and economic environment, and lessons from previous subprograms.