Local Public Finance and Capacity Building in Asia
Issues and Challenges
Subnational governments’ capacity to effectively fund and deliver public services
are crucial for the realisation of the benefits of decentralisation. However, subnational
capacities often suffer from significant weaknesses, ranging from inadequate assignments
of own-revenues, through to flaws in tax administration, the design of intergovernmental
transfers, spending assignments and various aspects of public financial management.
The volume discusses how better diagnostics and more strategic reforms can contribute
to easing the resource constraints on subnational governments, as well as creating
appropriate incentives for these governments to improve performance. The volume includes
studies of the enabling conditions for subnational capacity building in Asia, as well
as focused studies of China and India's fiscal relations challenges.