Fiscal Decentralization in Kenya: The Constituency Development Fund and the Growth of Government
AbstractThis paper explores the financial implications of fiscal decentralization policies on the central government's operating budget in Kenya. The paper evaluates how devolved funds under the constituency development fund (CDF) have been utilized to start healthcare capital projects (clinics) at the local level. The study finds that fiscal decentralization has promoted allocative efficiency and equity but at a cost of exporting tax burdens (operations and maintenance) to the central government emanating from capital projects implemented at the local level. The exported tax burdens have policy implications and call for reforms of the CDF program to reflect a benefit-expenditure structure.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11813.
Date of creation: 10 Oct 2008
Date of revision:
fiscal decentralization; budget; devolution; constituency development fund; health care; allocative efficiency;
Find related papers by JEL classification:
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- H0 - Public Economics - - General
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
- H5 - Public Economics - - National Government Expenditures and Related Policies
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- A10 - General Economics and Teaching - - General Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-12-07 (Africa)
- NEP-ALL-2008-12-07 (All new papers)
- NEP-PBE-2008-12-07 (Public Economics)
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