Contemporary perspectives on fiscal decentralisation and new local government in South Africa

Abstract

There are shared thoughts among scholars that fiscal decentralisation is a solution to the problems of poor public services in the local government. Fiscal decentralisation is the dispersal of financial responsibility to lower levels of government or other spheres of government. This study highlights various discourses on local self-government, especially fiscal decentralisation processes, local revenues, and the New Local Government philosophy of local government reform in South Africa. This research interrogates the importance of fiscal decentralisation as a tool to facilitate greater effectiveness and efficiency in local government. A qualitative research approach was used to obtain information. Through the review of the literature and selected official government reports, the study found that development in local government can be achieved through the effective decentralisation of responsibilities, fiscal policy management, fiscal decision-making authority and sufficient resources, including revenue collection authority to local authoritiesFiscal decentralisation requires a concerted effort in capacity-building and institutional fiscal reform and should, therefore, be associated with the strengthening of local authorities. Decentralisation can occur at the level of fiscal expenditures and revenues creation or sourcing. This paper  emphasises the importance of fiscal decentralization and the New Local Government philosophy of local government reform.

Keywords: Fiscal Decentralisation, Local Revenues, New Local Government, Finances