0w2010 01 RESUM EJECUTIVO 03 DEFcarta ang
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Second Global Report on Decentralization and Local Democracy. GOLD 2010 EXECUTIVE SUMMARY
UCLG ASPAC Policy Recommendations for Fiscal Decentralisation After discussion at the Workshop on Local Government Finances held at Batam, Indonesia, on 25-26 June, the members of the UCLG-ASPAC Region agree that the basis of its policy on Fiscal Decentralization is as follows: •
That local governments be given greater autonomy by having its powers widened to decide all tax bases and tax rates, and the level of fees for service, within its mandate.
•
That there be a review of the current allocation of revenue sources and service delivery responsibilities to each sphere of government and that they be reassigned so as to: a. Reduce vertical fiscal imbalance; b. Better match expenditure responsibilities with own-source revenues; c. Ensure all spheres of government share in natural resource revenues; and d. Reduce the impact of economic cycles on any one sphere of government.
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That local governments be provided with an increased and fixed share of national public sector revenue through grants and transfers, but with a reduced number of grants and a larger proportion being provided as untied funding.
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That grant distribution to local governments be managed by an institution that is independent of government, has membership acceptable to grant recipients and operates in a transparent manner to provide funds directly to the bank accounts of the recipients.
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That there be a more widespread application of horizontal fiscal equalization principles within the distribution of grant funding for local government.
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That all local governments have access to loan funds, under conditions and limits that are acceptable to both the national and local governments.
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That where one does not already exist, there be a Local Government Finance Corporation or equivalent established to ensure local government has access to loans at lower than commercial rates of interest.
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That all unfunded mandates of local government be removed by increased funding or reallocation of responsibilities, and that future unfunded mandates be made illegal.
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