Devolution and Fiscal Decentralisation

Aisha Ghaus pasha, Hafiz A Pasha

Abstract


Fiscal decentralisation represents the transfer of resources
from higher to lower levels of government usually accompanied by an
enhancement in responsibilities and functions of sub- national
governments and greater autonomy in their budget making and financial
decisions. The rising demand generally for decentralisation in
developing countries in recent years is a consequence of the broader
processes of globalisation, liberalisation and deregulation. Political
imperatives for decentralisation have been created by the urge for more
effective democratisation and the need to bring governments closer to
the people for greater accountability and better articulation of their
needs and preferences. In a number of countries, including Pakistan, the
failure of central or state/provincial governments to adequately capture
local preferences and provide basic services have strengthened the case
for use of local governments as delivery agents, such that the
production and distribution of services is carried down to the lowest
unit of government capable of capturing the associated costs and
benefits.

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DOI: https://doi.org/10.30541/v39i4IIpp.981-1011

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