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A centerpiece of the implementation of Swaziland's Urban Government Policy (1996) should be a system of fiscal transfers from the Central Government to popularly elected local councils that will provide the local governments the wherewithal to provide local public services. Since local governments currently play a very important role in the delivery of these services, the current system of intergovernmental transfers is not well suited to the new institutional arrangements. As part of the initiative to make local authorities be more effective in service delivery and accountable to their constituencies, it is essential to match responsibilities with financial capability within the provisions of clear and binding performance measures to ensure value for money and compliance to legal requirements. Therefore, it is crucial that an analysis of an appropriate system of intergovernmental transfers put in place. As a result, the principal objective of the study is to assist the Government in establishing a system for the allocation intergovernmental fiscal transfers from the central government to local authorities in a predictable and timely manner that fosters efficient service provision at the local government level. The study further proposes improvements in the regulatory and budgetary framework for local governments, local financial managament and accounting reforms, as well as a re-orientation of the coordinating role of the Department of Urban Government within Ministry of Housing and Urban Development.
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