Question

What is the relationship between 'fiscal decentralization' and decentralized planning?

• A. Fiscal decentralization and decentralized planning are unrelated concepts.
• B. Decentralized planning is a prerequisite for fiscal decentralization.
• C. Fiscal decentralization hinders effective decentralized planning.
• D. Fiscal decentralization is a key prerequisite for effective decentralized planning.

Answer 1

Answer:

D. Fiscal decentralization is a key prerequisite for effective decentralized planning.

• Without the ability to raise and manage their own funds, local bodies cannot effectively implement decentralized plans.