Fiscal decentralisation risks weakening government fiscal discipline, study finds.
The article examines how giving more financial power to local governments can affect the overall financial health of a country. The researchers wanted to see if letting local governments control their own spending and revenue could lead to problems with the country's finances. They found that when local governments have more control, it can make it harder for the central government to keep track of everyone's spending. This lack of oversight can make it easier for local governments to overspend and not stick to their budgets.