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Fiscal Issues in Subnational Regions

What is the fiscal envelope of a subnational government given national fiscal targets and transfers and local revenue potential?

With growing national support for decentralization, subnational governments are being/have been assigned significant responsibilities for supporting economic growth in their regions. In this section, we present:

  • resources that provide a framework for understanding fiscal constraints at the subnational level of government;
  • a range of Bank documents that review fiscal management practices and experiences at the subnational regional level;
  • some external work on tax competition among regions.

Related Materials:

Decentralization on the assignment of fiscal powers to subnational governments;

Issues of interjurisdictional equity.

Case Studies:

DISCLAIMER: The case studies below are in working draft form. They are being released as a resource to benefit policy makers and researchers and are not a final publication.