This OECD Policy Paper combines insights from the cross-country research work of the Network on Fiscal Relations across Levels of Government and country experiences drawn from OECD Economic Surveys. The paper identifies a range of good practices on the design of country policies and institutions related to strengthening fiscal capacity, delineating responsibilities across levels of government and improving intergovernmental co-ordination. A revised version of this paper will appear in the next volume of Fiscal Federalism.Read more
The Korean Presidential Committee on Autonomy and Decentralisation and the Fiscal Network organised a Conference on Inclusiveness and Decentralisation on 27-28 October 2020 in Seoul, Korea. The objective of the Conference was to review the current state of fiscal decentralisation and policy implications from OECD countries' experiences and explore future reform actions. An MoU for future co-operation was signed with the OECD.Read more
The OECD Fiscal Federalism Series presents policy analysis of, and statistics about, intergovernmental fiscal relations and state/regional and local public finance. It draws on the work of the OECD Network on Fiscal Relations across Government Levels and of other OECD bodies covering these areas.Read more
The OECD Network on Fiscal Relations across Levels of Government provides analysis and statistical underpinnings on the relationship between central and subcentral government, and its impact on efficiency, equity and macroeconomic stability.
NEWS & EVENTS
Special "Emergency" Meeting on the COVID-19 Pandemic Response
Roundtable of the KIPF-OECD-ADB Network on Fiscal Relations in Asia publication
Funding and financing of local government public investment
The bulk of government investment is done at the local level in OECD countries, representing on average 41% of total public investment. Most studies on subnational government debt focus on the regional or state level, and very few studies analyse public investment specifically by local governments. This paper aims at filling this gap, presenting a framework to analyse the key factors, which affect the capacity of local governments to fund and finance public investment, and illustrates the framework with five case studies: Denmark, Finland, Ireland, Netherlands and New Zealand.
Federalism and Public Health Decentralisation in the Time of COVID-19
The Coronavirus pandemic has put extreme pressure on public health services, often delivered at the local and regional levels of government. The paper focuses on how countries made changes to the configuration of federalism during the first wave of the pandemic. These changes typically have involved the centralisation and decentralisation of certain health-related activities, as well as the creation of new coordination and funding mechanisms. Specific tools that have been used include an enhanced role of the executive branch (“executive federalism”), the use of centres of government for vertical coordination, as well as the introduction of unique state-of-emergency laws. New horizontal coordination arrangements have also emerged with the more decentralised approaches. The strengths, weaknesses and implementation risks of various approaches are analysed using country examples.
Ageing and Fiscal Challenges across Levels of Government
Populations in OECD and emerging economies are ageing rapidly, which will have significant macroeconomic impacts, including on public expenditures and tax revenues. The rules and practices that govern fiscal relations among different levels of government, such as their responsibilities for taxation, spending and debt management, have a bearing on economic efficiency and ultimately growth. The consequences of population ageing at subnational government levels are especially intense. Many local governments are vulnerable to the ageing of their populations from a fiscal perspective. The economic and fiscal challenges of an ageing population go beyond intergovernmental boundaries, and they require complex intergovernmental policy responses. This volume brings together cross-country studies of fiscal policy, demographics and spatial productivity, as well as country studies of Brazil, Canada, China and Germany.