| Abstract: | Despite a long history of decentralization, Sudan only truly introduced regionalization as a form of government in 1972 for the South and in 1980 for the North. Its introduction created at least three problems regarding the fiscal and financial relationship between the central government and its subordinate regional governments, viz. how to allocate funds efficiently, how to allocate taxing powers rationally and efficiently, and how to share revenue. A review of the central government's financial position reveals that it is hardly in a position to shoulder additional expenditure brought about by the creation of regional governments. On the other hand, a review of regional governments' financing also reveals their inability to raise sufficient funds locally. At present the regions depend rather heavily on the central government's meagre recurrent budget. However, the criteria for allocating funds from the centre to the regions are inefficient and inequitable, and there is no clear framework of regional planning and investment policies. The author suggests alternative criteria for the allocation of central funds to the regions. Bibliogr., notes. |
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