Fiscal and Financial Decentralization: A Comparative Analysis of Six West European Countries

One of the dimensions of reform in the public sector is the distribution of tasks between different levels of government. In most countries in Western Europe central government has become predominant, levying most of government revenues and providing a large number of goods and services. A reduction in the fiscal autonomy of local governments caused them to become increasingly dependent on central government grants for implementing their policies. In addition, a shift of political responsibility from the local to the central level caused local governments in some countries to fall increasingly under the control of central government.