Fiscal decentralisation can be pivotal to improving the efficiency and equity of public service delivery and fiscal management. The OECD Network on Fiscal Relations promotes a strategic approach to decentralising fiscal powers and responsibilities, ensuring that subnational governments have the necessary resources and incentives to meet the needs of their communities effectively. This approach fosters more responsive, accountable and tailored public services.
Fiscal federalism network
The OECD Network on Fiscal Relations across Levels of Government, also known as the “Fiscal Network”, provides a platform for countries to engage on intergovernmental fiscal relations and fiscal decentralisation policy issues. Its core mission is to improve the efficiency, equity and stability of fiscal systems through cross-country policy analysis and international comparisons. The Network facilitates best practice sharing through high-level meetings and maintaining a comprehensive decentralisation database, informing policymaking and reforms. Through collaborative efforts like workshops and the Fiscal Federalism publication series, the Network enables policymakers to access and contribute to research and insights on managing financial relationships across government levels. Supported by a multidisciplinary OECD team, the Network emphasises concrete outcomes, offering members a structured environment to learn, share and apply successful policy strategies.
Key messages
Good intergovernmental fiscal relations are essential for macroeconomic stability, as highlighted in our Intergovernmental Fiscal Outlook. By improving coordination between national and subnational fiscal policies, we support the development of frameworks that promote sustainable economic growth and fiscal policy. This strategic approach helps countries navigate economic cycles and shocks more effectively, ensuring a stable economic environment that fosters investment and enhances social welfare.
Drawing on a wealth of cross-country analyses, best practices and comprehensive international comparisons, the Network provides a unique platform for policymakers to learn and innovate. By sharing experiences and solutions from around the globe, members are equipped with actionable insights to refine their fiscal federalism frameworks. This collaborative learning environment is instrumental in driving forward-looking policy reforms and enhancing governance at all levels of government.
Context
From the Fiscal Decentralisation database: Tax autonomy
The OECD’s Fiscal Decentralisation database showcases the range of tax autonomy across OECD countries, underlining the importance of empowering local governments for strengthened fiscal accountability and performance.
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