The utility of fiscal decentralisation in local governance: The case of Chitungwiza Municipality

Abstract

There is a shared sentiment among scholars and public policy makers that fiscal decentralisation is the most suitable panacea for the problems associated with centralised provision of public services. Fiscal decentralisation essentially involves a deliberate shift of fiscal powers and resources from the central government to local authorities. This study endeavours to interrogate the practicality of fiscal decentralisation using Chitungwiza City Council as a case study. Fiscal decentralistion can either be a panacea or a plague, that is, it has its own virtues and vices. The problem central to this study is how one can strike a balance between the virtues and vices of fiscal decentralisation so that the practice becomes feasible. There is a need to achieve a sustainable balance between expanding local authorities’ fiscal autonomy and the reduction of central government’s powers and control of local authorities. This study seeks to examine the legal and policy framework for fiscal management in Zimbabwean local authorities. It also attempts to describe Chitungwiza Town Council’s fiscal performance and also identify the necessary conditions for fiscal decentralisation to take place. This research also seeks to describe how fiscal decentralisation can either positively or negatively affect local authority service delivery. This study also investigates the relationship that exists between the central government and local authority in as far as fiscal management is concerned. The research also proposes sustainable mechanisms for improving fiscal performance in local authorities