Impact of Fiscal Decentralization on Local Autonomy in the Sudan: Experience of Gadarif State

Abstract

Based on state data of the periods (1997-2012), this study aimed at evaluating the fiscal decentralization experience of Gadarif state of eastern Sudan in the context of different aspects of fiscal decentralization, namely expenditure assignment, revenue assignment and intergovernmental transfers. To accomplish these objectives, many local fiscal indicators have been calculated, and parameters of regressions of both revenues and expenditures have been estimated. The results reveal that the experience of fiscal decentralization of the state came out with poor fiscal situations indicated by higher dependence on the federal transfers and higher vertical imbalance and consequently the failure of the state government to perform its responsibilities of delivering the basic services to its constituents. Moreover, none of both local expenditure neither local revenues respond to federal transfers, indicating the failure of these