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Fiscal Decentralization and Public Subnational Financial Management in Peru

  • Ehtisham Ahmad
  • Mercedes Garcia-Escribano
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    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.

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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/120.

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    Length: 25
    Date of creation: 01 May 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/120
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    1. Ehtisham Ahmad & Bob Searle, 2006. "On the Implementation of Transfers to Subnational Governments," Chapters, in: Handbook of Fiscal Federalism, chapter 15 Edward Elgar.
    2. Ehtisham Ahmad & Maria Albino-War & Raju Singh, 2006. "Subnational Public Financial Management: Institutions and Macroeconomic Considerations," Chapters, in: Handbook of Fiscal Federalism, chapter 16 Edward Elgar.
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