Our workFiscal and budget policy

Decentralisation

The decentralisation of government functions from national to sub-national level is argued to be a critical mechanism for the translation of public resources into responsive, effective and efficient public services. This proposition is based on two central arguments. Firstly, local governments are closer to the citizens they serve and, therefore, are better placed to provide services in line with local preferences, based on local information. Secondly, because decentralised government is closer to citizens, it is more likely to be accountable, thus changing the incentives for better performance. However, these benefits of decentralisation do not emerge automatically. They depend on the degree of autonomy afforded to sub-national governments in practice, the quality of PFM systems, technical and managerial capacity at the sub-national level and, critically, on the design and transparency of intergovernmental fiscal transfers. CABRI will focus on understanding, reviewing and sharing lessons on the allocation and utilisation of public finances for service delivery at the sub-national level, while focusing on the water, sanitation and hygiene sector.

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