Expectations from Local Fiscal Administration
Local fiscal administration encompasses the several tasks associated with the
delivery of a program of government services to the citizenry, including
planning the program, executing it, financing it, and evaluating its results.
Proper implementation of local programs should contribute to the well-being
of the citizenry and ensure the fiscal sustainability of the operations of the
government and local economy. The administrative tasks may be done by
the central government (possibly through its local offices), by the local
government, or by some cooperative arrangement involving both levels.
Examples of each combination appear across industrial, developing, and
transition countries. Regardless of the arrangement, the tasks must get
accomplished in order for the finances of the government to be managed.
The tasks are interrelated components of a functioning program of fiscal
administration. Because the size, assigned responsibilities, political constraints,
and legislative structures of local governments vary dramatically,
even within a single country, the articulation of fiscal administration will
itself be subject to great variation. However, the tasks identified here are
basic to all local fiscal administration.
The system of local fiscal administration is expected to provide fiscal
discipline and responsibility, responsive resource allocation, and efficient
and effective government operations (Campos and Pradhan 1996; Schick
1998). The system should function with transparency of policy decisions,
program results, and finances, both within the government and to the
community at large.