Intergorvernmental Fuscal Relations in Developing Countries. A Review of Issues.

Fiscal decentralisation - the devolution of taxing and spending powers to lowe levels of government - has become an important theme of governance in many developing countries in recent years. Accordingly, restructuring of governmental functions and finances between the national and lower levels of government has entered the core of the development debate. A general conclusion emerging from this review of theoretical and empirical literature on intergovernmental fiscal relations is that sub-national governments need to be given access to adequate resources to do the job with which they are entrusted.