Optimising Fiscal Decentralisation for Improved Local Government Service Financing in Zimbabwe: Assessing the Hurdles and Prospects

Abstract

This study examines the challenges and prospects of implementing fiscal decentralisation as a model for financing local government service delivery in Zimbabwe. The paper argues that a local authority’s ability to provide effective services depends on sufficient financial resources that are often mobilised through the fiscal decentralisation model. For effective service delivery, local governments should manage their revenues and expenditures without undue interference from their central or national governments, which is achieved through the fiscal decentralisation model. Through a review of secondary data, this study reveals that the main obstacles to implementing fiscal decentralisation in Zimbabwe are the absence of political commitment, corruption, existing political conflicts, polarisation, and the central government's excessive involvement in local government finance management. To overcome these challenges, this study suggests granting local authorities continuous operational autonomy to establish their revenue base and make independent expenditure decisions.