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FISCAL DECENTRALIZATION, LOCAL REVENUES AND THE NEW LOCAL GOVERNMENT THEORY : FORMS, MERITS, DEMERITS AND PRINCIPLES



 By
Nyawo  Gumede
Institutional  affiliation Tshwane University of Technology, Public Management Department  . South Africa




Abstract

The concept of local autonomy or local self government has in recent years sparked innumerable debates about fiscal decentralization, local revenues and the New Local Government Theory. Development can be achieved through the effective fiscal decentralization of responsibilities, fiscal policy management, fiscal decision-making authority and sufficient resources, including revenue collection authority to local authorities, closest to the people they represent. Fiscal decentralization requires concerted effort in capacity-building and institutional fiscal reform and should therefore be associated with the strengthening of local authorities. Fiscal decentralization is seen a  stimulant to local development. Types of decentralization range from political decentralization, administrative decentralization to fiscal decentralization. Decentralization can occur at the level of fiscal expenditures and revenues creation or sourcing. This article emphasizes the importance of  fiscal decentralization , local revenues and the New Local Government theory in the municipal management discourse.


Abstract

The concept of local autonomy or local self government has in recent years sparked innumerable debates about fiscal decentralization, local revenues and the New Local Government Theory. Development can be achieved through the effective fiscal decentralization of responsibilities, fiscal policy management, fiscal decision-making authority and sufficient resources, including revenue collection authority to local authorities, closest to the people they represent. Fiscal decentralization requires concerted effort in capacity-building and institutional fiscal reform and should therefore be associated with the strengthening of local authorities. Fiscal decentralization is seen a  stimulant to local development. Types of decentralization range from political decentralization, administrative decentralization to fiscal decentralization. Decentralization can occur at the level of fiscal expenditures and revenues creation or sourcing. This article emphasizes the importance of  fiscal decentralization , local revenues and the New Local Government theory in the municipal management discourse.

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