Gurkan, AsliYilmaz, SerdarAslam, Ghazia2012-08-132012-08-132010-02https://hdl.handle.net/10986/11095Fiscal decentralization provides the link between incentives for better performance of the local government and the elected support from the citizens and is, therefore, essential for an effective system of decentralization. The purpose of this note is to elucidate components of a well-designed fiscal decentralized system and is aimed to assist task teams and stakeholders to evaluate fiscal decentralization effort in any given country. There are two main components of fiscal decentralization system: a) discretion of the local government to make decision on fiscal matters (including revenue assignment for local goods, revenue generation, transfer of funds through a well-designed transfer system, and utilization of funds); and b) accountability including mechanisms that hold local government officials to other elected and non-elected officials and social accountability that allows direct monitoring of the local government officials by the citizens.CC BY 3.0 IGOACCESS TO RESOURCESACCOUNTABILITYACCOUNTABILITY MECHANISMACCOUNTABILITY STRUCTURESACCOUNTINGALLOCATIONANNUAL REPORTSASSIGNMENT OF EXPENDITUREASSIGNMENT OF EXPENDITURE RESPONSIBILITIESAUDIT COMMITTEESAUDIT SYSTEMAUDITOR GENERALAUDITORSBANK ACCOUNTSBUDGET CONSTRAINTBUDGET CONSTRAINTSBUDGET DOCUMENTSBUDGET EXECUTIONBUDGET MONITORINGBUDGET PREPARATIONBUDGET PREPARATION PROCESSBUDGET PROCESSBUDGETARY DECISIONSBUDGETARY DOCUMENTSBUDGETARY PROCESSBUDGETINGCAPITAL INVESTMENTSCENTRAL AUTHORITIESCENTRAL GOVERNMENTCENTRAL GOVERNMENT AUTHORITIESCENTRAL GOVERNMENTSCITIZEN PARTICIPATIONCOLLECTIVE ACTIONCOMMUNITY MEMBERSCOMMUNITY PLANNINGDEBTDECISION-MAKINGDECISION-MAKING PROCESSDEFAULTSDEVELOPING COUNTRIESDISBURSEMENTSDISCRETIONARY FUNDSDISTRIBUTABLE POOLDISTRIBUTION OF EXPENDITUREDISTRICTDISTRICT LEVELDISTRICTSDIVISION OF RESPONSIBILITIESELECTRICITYEQUIPMENTEXPENDITUREEXPENDITURE ASSIGNMENTEXPENDITURE ASSIGNMENTSEXPENDITURE PROCESSEXPENDITURE RESPONSIBILITYFEDERAL EDUCATIONFEDERALISMFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT CAPACITYFINANCIAL STATEMENTSFIRE PROTECTIONFISCAL ACCOUNTABILITYFISCAL DECENTRALIZATIONFISCAL DECISIONSFISCAL FEDERALISMFISCAL PERFORMANCEFISCAL REFORMSFISCAL RESOURCESFISCAL SYSTEMFISCAL TRANSFERGOVERNMENT BORROWINGGOVERNMENT REVENUEGOVERNMENT TRANSFERSGRANT PROGRAMHARD BUDGETHARD BUDGET CONSTRAINTHARD BUDGET CONSTRAINTSHEALTH SECTORHOUSINGINFORMATION DISSEMINATIONINSTRUMENTINTERGOVERNMENTAL FISCAL REFORMSINTERGOVERNMENTAL TRANSFERINTERGOVERNMENTAL TRANSFER SYSTEMINTERGOVERNMENTAL TRANSFER SYSTEMSINTERGOVERNMENTAL TRANSFERSINTERNAL AUDITISSUANCELEVEL OF GOVERNMENTLEVELS OF GOVERNMENTLICENSESLOCAL BORROWINGLOCAL COUNCILLOCAL DEVELOPMENTLOCAL GOODSLOCAL GOVERNMENTLOCAL GOVERNMENT BORROWINGLOCAL GOVERNMENT OFFICIALSLOCAL GOVERNMENT REVENUELOCAL GOVERNMENT SERVICESLOCAL GOVERNMENT SYSTEMLOCAL GOVERNMENTSLOCAL OFFICIALSLOCAL POLITICIANSLOCAL PUBLIC GOODSLOCAL REVENUEMACROECONOMIC STABILIZATIONMAYORMORAL HAZARDMUNICIPALITIESPERFORMANCE AUDITPERFORMANCE MEASURESPOLITICIANSPOVERTY ASSESSMENTPOVERTY REDUCINGPOVERTY REDUCTIONPROGRAMSPROPERTY TAXPROPERTY TAXESPROVINCEPROVINCIAL EDUCATIONPROVINCIAL FINANCEPROVINCIAL GOVERNMENTPUBLICPUBLIC ACCOUNTABILITYPUBLIC AGENCIESPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC EXPENDITURE TRACKINGPUBLIC FINANCEPUBLIC FINANCE MANAGEMENTPUBLIC FINANCIAL ACCOUNTABILITYPUBLIC FINANCIAL MANAGEMENTPUBLIC FINANCIAL MANAGEMENT SYSTEMPUBLIC HEALTHPUBLIC INVESTMENTPUBLIC INVOLVEMENTPUBLIC OFFICIALSPUBLIC POLICYPUBLIC SECTORPUBLIC SECTOR BORROWINGRECURRENT EXPENDITUREREFORM PROGRAMREGIONAL GOVERNMENTREVENUE ASSIGNMENTREVENUE AUTONOMYROADSSERVICE DELIVERYSOCIAL DEVELOPMENTSOCIAL INFRASTRUCTURESOCIAL SERVICESSOCIAL WELFARESUBNATIONALTAXTAX BASETAX COLLECTIONTAX LAWSTAX RATETAX REVENUETRANSFER SYSTEMTRANSPARENCYUNCERTAINTYUNCONDITIONAL BLOCK GRANTURBAN TRANSPORTATIONVILLAGEVILLAGESWorld Bank10.1596/11095