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Fiscal decentralization is a critical component of urban planning and development, particularly as cities around the world experience rapid growth, complex challenges, and increasing demands for local governance. It refers to the process by which financial responsibilities, decision-making powers, and revenue-generation capabilities are transferred from central governments to local governments, such as municipalities. The aim is to empower local authorities to manage public resources effectively, promote local development, and improve service delivery based on local needs and priorities. One of the core dimensions of fiscal decentralization is expenditure assignment. This refers to the process of assigning responsibility for various public services and expenditures to different levels of government. In urban areas, this typically means municipalities being responsible for local infrastructure, waste management, water supply, urban transport, housing, and local economic development programs. The rationale is that local governments, being closer to residents, have better knowledge of local needs and can deliver services more efficiently and responsively than central authorities. Another important dimension is revenue assignment, which focuses on the allocation of revenue sources to different levels of government. Fiscal decentralization ensures that municipalities have their own revenue sources, giving them the autonomy to mobilize resources for local development. _____ _____ __________ __________ ______.
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