Corruption in Public Financial Management and Procurement:
Fiscal decentralisation
Written for U4 by Ivar Kolstad and Odd-Helge Fjeldstad - CMI (March 2006)
See also:
Decentralisation and corruption - A reveiw of the literature (Fjeldstad, 2003)
Introduction
Fiscal decentralisation involves the transfer of taxing and spending
powers to sub-national levels of government. Developing countries
are in general more centralised than most industrialised countries
were at a similar stage of development. As a consequence
of much dissatisfaction with the results of centralised economic
planning, reformers have turned to decentralisation to break the
grip of central government and induce broader participation in
democratic governance. Thus, fiscal decentralisation has become
an important theme of governance in many developing countries
over the past two decades. For developing countries on average,
the share of public sector expenditures allocated at the sub-national
level increased from less than 13% in 1980 to about 20%
in the late 1990s. In the same period, there has been a modest
increase in the share of local in total taxes.
Download
pdf to read the rest
 |
Public Financial
Management and Procurement |
 |
Budget process |
|
Revenue administration |
|
Fiscal decentralisation |
|
Direct budget support |
|
Public Expenditure Tracking |
|
Procurement |
Query the U4 helpdesk about PFM |
|
|
U4 welcomes any | CONTACT |
|
Hannes Hechler
|
| RECOMMENDED READING |
|
“It is our money. Where is it gone?” is a short documentary, released by the International Budget Partnership, on an initiative, in Mombasa (Kenya) to involve communities directly in monitoring the Constituency Development Fund, a fund managed by Kenyan parliamentarians. Through social audits, communities monitored budgets and held their government accountable for managing the public’s money and meeting the needs of the poor.
|
| RELATED U4 PUBLICATIONS |
This U4 Brief assesses how banks facilitate illicit capital flows from developing countries. The shortcomings of the existing regulatory frameworks are discussed, and recommendations are made for donor governments on what can be done to curb the flow of corrupt money out of the developing world. |
