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GOLD II

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0w2010 01 RESUM EJECUTIVO 03 DEFcarta ang

26/10/10

19:49

Página 22

EXECUTIVE SUMMARY 22

United Cities and Local Governments

This weakness is reflected in the low ratio of local expenses to public expenditure: averaging near 8 percent for all countries analyzed (non-weighted average). [For more details see figure 3].

responsibilities and therefore of expenditures between local authorities and central governments is often unclear or inappropriate. In all countries, the higher levels of governments (regions/provinces or State) exert a controlling power over local governments through ex ante and/or ex post budget controls.

Low level of resources

The confusion in the division of tasks is sometimes aggravated by international donors. Through new development aid modalities –budgetary aid and sector wide support– they often favor the recentralization of sectoral policies, such as education, health, water, and sanitation, among others through the concentration of financial means in the ministries, without taking the new responsibilities of local governments into consideration.

In Africa, generally there has been less decentralization of revenues than of expenditure: local government revenue represents only 7 percent of total public revenue. In many countries, local governments manage less than 10 percent of public revenue and often less than 5 percent, and a similar trend is observed for expenditure. [For more details see figure 3].

Figure 3: Local Government Expenditure and Revenue as a Part of General Government Budgets in Certain African Countries

40% 30% 20% 10% 0

revenue espenditure


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