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Lesson
To ensure the success of expenditure management at subnational government level, these entities need to become more dependent on locally sourced revenues over time. Rapidly increasing central transfers can make them more dependent to the national government and weaken their motivation to raise local revenues.

Project Number: 50168-001, 50168-002, 50168-003
Project Name: Fiscal and Public Expenditure Management Program
Report Date:
Lesson
Decentralization and devolution to subnational governments need to be undertaken with caution, especially where capacity is known to be limited. A sequential program is useful, where functions and resources are better devolved first to local governments that are fully staffed and capacitated, and later to others, following a program that improves institutional capacity to accept the new responsibilities.

Project Number: 50168-001, 50168-002, 50168-003
Project Name: Fiscal and Public Expenditure Management Program
Report Date: