Fiscal Decentralization

Fiscal decentralization refers to the process of transferring financial responsibilities and powers from central governments to local or regional authorities. This allows local governments to manage their own budgets, collect taxes, and make decisions tailored to their communities' needs. By decentralizing fiscal responsibilities, it aims to enhance accountability, improve public service delivery, and encourage local participation in governance. Ultimately, it empowers local leaders to address specific challenges and priorities, fostering more effective and responsive governance at the community level.