Hundreds of thousands of elected sub-national governments worldwide provide services and levy taxes on residents and companies. The trend towards decentralisation over the past 20 years has increased their capacity to affect the economic and fiscal course of their country, while the global economic crisis has created new challenges for balancing budgets at all levels of government.
Fiscal Federalism 2014: Making Decentralisation Work, says that better collaboration between all government entities is needed to rein in budget deficits, improve the efficiency of taxation and spending and bring about a fair sharing of fiscal burdens.
The report will be presented during the 3-5 December meeting of the International Tax Dialogue, in Marrakech, Morocco, on Tax and Intergovernmental Relations. It provides an overview on recent trends in inter-governmental fiscal relations and points out the uneven developments seen in the decentralisation process.