Open AccessFiscal Decentralisation in Pakistan
Author(s) -
Naeem Ur Rehman Khattak Khattak,
Iftikhar Ahmad,
Jamil Khan
Publication year - 2010
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v49i4iipp.419-436
Subject(s) - decentralization , government (linguistics) , devolution (biology) , autonomy , empowerment , central government , business , competition (biology) , economics , corporate governance , service (business) , economic system , public economics , local government , economic policy , economic growth , public administration , finance , market economy , political science , marketing , paleontology , ecology , linguistics , philosophy , bipedalism , law , biology
Fiscal decentralisation is considered as an important policyinstrument to achieve economic efficiency and ensure effectivegovernance through financial autonomy of provincial governments. Itintegrates the smaller units of federation and ensures theirparticipation in the economic development of country while at the sametime capacitate the central government to fulfil the national leveltasks more efficiently and effectively. It is considered as an importantgrowth accelerating measure. It empowers the lower level governmentsthrough financial autonomy and administrative empowerment. Devolutionhelps the lower tiers of government to act as a powerful administrativeagent of the central government. However, decentralisation helps unitsto be more innovative, responsible and efficient as they have moreautonomous status. Decentralisation policy is believed to positivelyaffect economic growth because it envisage better derivation andimplementation of social policies. The decentralised setup of thegovernment does not have any information barriers and lower level ofgovernment is better positioned to know the basic necessities anddevelopmental needs of the people that are living in different regionsof a country. Decentralisation brings up the true potential of alocality with the efficient resource exploration and its efficientutilisation. It furthers competition among the competing constituenciesfor better service provision which results in higher efficiency. Thisall has the potential to positively influence economicgrowth.