Fiscal autonomy

Fiscal autonomy refers to the ability of an entity, such as a government or local authority, to manage its own financial resources without external control. This includes the power to collect taxes, allocate spending, and make budgetary decisions independently. For example, a city with fiscal autonomy can decide how to fund local services without needing approval from higher levels of government. This independence can lead to more tailored solutions for local needs, but it also means that the entity must be accountable for its financial decisions.