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:

• Badakhshan
• Faryab
• Herat