(World Bank, Washington, DC, 2022)
Stoykov, Petar Georgiev; Yilmaz, Serdar
Limited local tax revenue and low
public sector efficiency are two critical problems of public
sector management and key constraints for the economic and
social development of many subnational governments in large
federal countries. To create fiscal space without
compromising macroeconomic stability and fiscal
sustainability, there is a need for reforms that lead to
better use of public resources and improved expenditure
efficiency through reforms in budgeting, procurement, and
tax administration. This note presents lessons learned from
the World Bank’s subnational governance projects in three
large federal countries - Argentina, Brazil and Nigeria -
between 2008-2017. These lessons learned can be useful in
shaping the design of future subnational governance projects
in other federal countries, particularly those projects
seeking to improve service delivery, public expenditure
systems and core governance institutions.