Fiscal Decentralization and Public Subnational Financial Management in Peru

25 Pages Posted: 21 Jun 2006

See all articles by Ehtisham Ahmad

Ehtisham Ahmad

International Monetary Fund (IMF)

Mercedes García-Escribano

International Monetary Fund (IMF)

Date Written: May 2006

Abstract

There is increasing interest in fiscal decentralization in Peru as a mechanism to generate more involved decision-making at the subnational level. This is tempered with a continuing emphasis on overall fiscal stability. However, considerable work needs to be undertaken to define more clearly expenditure responsibilities and financing mechanisms that increase local accountability. In addition, a more transparent fiscal transfer system is needed, together with clarity in expenditure management at all levels of government. The paper suggests that a substantial work agenda is needed to extend the decentralization process with greater transparency.

Keywords: Fiscal policy, intergovernmental fiscal relations

JEL Classification: H20, H77

Suggested Citation

Ahmad, Ehtisham and García-Escribano, Mercedes, Fiscal Decentralization and Public Subnational Financial Management in Peru (May 2006). IMF Working Paper No. 06/120, Available at SSRN: https://ssrn.com/abstract=910685

Ehtisham Ahmad (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Mercedes García-Escribano

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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