Financing Local Government

image of Financing Local Government
Decentralisation is now taking place in the public administrations of most countries of the world. A critical determinant of the effective performance of local governments is finance – their ability to both mobilise financial resources and to use those resources effectively and efficiently.

This book explores the variety of methods used to ensure that fiscal decentralisation takes place alongside administrative decentralisation. It considers the range of revenue sources available, the design systems of intergovernmental transfers between central and local government, and the kinds of rules and procedures necessary to ensure that local governments use their financial resources appropriately.

The experiences described in this book will help local government managers, and national policymakers charged with local government finance issues, to ensure that they follow good practice in their own programmes of local government reform.



The Dynamics of Fiscal Decentralisation: The Case of Ghana

The aim of this case study is to understand the dynamics of the implementation of fiscal decentralisation in Ghana. In 1992 Ghana returned to civilian rule. A review of the Local Government Law of 1988 became necessary to bring it into compliance with the local government provisions contained in the constitution. Law 207 of the Provisional National Defence Council was therefore repealed by the promulgation of the Local Government Act, 1993. The implementation of the new decentralisation policy generated deep-seated political tension right from the outset, involving two interested parties who influenced local government law at the highest level of government.


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