Intergovernmental fiscal systems and self-rule: A Kenyan case study
Abstract
The conferment of self-rule or autonomy to subnational governments is incomplete
without the corresponding conferment of the financial means and discretion necessary to
facilitate the exercise of such autonomy. This makes the design of a devolved state’s
intergovernmental fiscal system and its implementation central to the realisation of
subnational autonomy. To facilitate the subnational exercise of autonomy, therefore, an
intergovernmental fiscal system needs to be designed in such a manner as to extend and
allow the accountable exercise of fiscal autonomy by subnational governments. This
entails the accountable exercise of expenditure, revenue and budgetary autonomy.