Find in Library

<p><em>After a long period of time when they have been considered as collateral of the State finances, the local finances have become an economic and a political stake in all the countries. Whatever the decentralization degree of a country may be, the financial relationships between the State and the local collectivities are multiple and complex. Even tough it is usually agreed that administrative decentralization is accompanied by numerous advantages, one has to acknowledge that its financial dimension requires multiple and subtle differentiations. The major problem to be considered steams from a lack of resources that local public administration is confronted with in the context of an increasing set of competences and responsibilities that are decentralized to them. At this point, the local collectivities have financial resources unadjusted to the tasks they are confronted with; the broader context can be described in terms of budgetary constrains and an increased global fiscal pressure that reached a considerable excessive level for the tax payers from all the countries. For this reason, the central governments must give to the local collectivities a larger autonomy and financial responsibility.</em></p>