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GOLD II

Page 31

0w2010 01 RESUM EJECUTIVO 03 DEFcarta ang

26/10/10

19:49

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EXECUTIVE SUMMARY 28

United Cities and Local Governments

can be divided into considerations related to structure and performance.

Structure The basic structure of intergovernmental relations is often summarized with statistics on the expenditure and revenue shares of various levels of government. The figure and table which follow provide the estimated sub-national (total, upper tier, and lower tier) shares of aggregate government expenditure and revenue for a range of countries in the Asia Pacific Region. Two points are worth highlighting. First, the extent of expenditure and revenue decentralization

varies widely across the region. Expenditure shares at the local level range from five percent (Pakistan and Thailand) to 50 percent (China), and local level revenue shares vary from less than one percent to 25 percent. Generally speaking, the extent of decentralization is most pronounced in East Asia, followed by South East Asia, South Asia and the Pacific nations, respectively. While India may appear to be an exception to the rule for South Asia, it must be remembered that the bulk of decentralization to the local level there is focused on a few large urban centers [see Figure 4]. Second, decentralization of expenditures is significantly more extensive than decentralization of revenues across all countries. Among other

Figure 4: Local Government Expenditure and Revenue as a Part of General Government Budgets in Certain Asia Pacific Countries 90% 80% 70% 60% 50% 40% 30% 20% 10% 0

revenue expenditure


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