Fiscal decentralisation and public governance in Lebanon

Abstract

The Lebanese tax system has many structural weaknesses and is in need of reform, specifically at the level of municipalities, or sub-governments. At this level there is a lack of clear delineation of responsibilities from the central government, expenditure bottlenecks, and weak fiscal and managerial capabilities. These constitute major impediments to efficiency and growth. The present study aims to investigate the global trend of fiscal decentralisation from central to local governments, as a means of improving the Lebanese tax system through fundamental changes. It is believed that the process of tax reform will help alleviate the problems of public debt and promote the growth and development of the national economy. Documents from the Lebanese Ministry of Finance were translated into English and analysed in conjunction with findings from international and Lebanese studies on municipalities and sub-governments. These methods were used to provide an in-depth study of fiscal decentralisation in Lebanon.