01869cas a2200253 a 4500 AALejournalIMF018927 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484387788 1018-5941 BD-DhAAL BD-DhAAL Boadway, Robin. Designing Sound Fiscal Relations Across Government Levels in Decentralized Countries / Robin Boadway, Luc Eyraud. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (44 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper discusses how decentralized countries can achieve sound fiscal relations between the central government and lower government levels. The concepts of 'vertical gap' and 'vertical balance' provide an analytical framework for identifying and addressing key challenges. These concepts can help policymakers ensure that the financing of subnational governments (composed of transfers received from the center, own revenues, and borrowing) is both efficient and adequate given the allocation of spending responsibilities. More generally, the paper offers some perspectives about the optimal design of decentralization systems by examining the sequencing and economic principles underlying revenue and expenditure assignments, the use of transfers, and borrowing. Mode of access: Internet Eyraud, Luc. IMF Working Papers; Working Paper ; No. 2018/271 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/271/001.2018.issue-271-en.xml IMF e-Library