A preview of the PDF is not available
Allocation of Local Government Functions: Criteria and Conditions
Allocation of public functions and services is specifi ed by the assignment of expenditures and responsibilities for service delivery and is not just a simple legal action of allocating public services from one level or unit of government to another. Th e allocation of public functions can be redesigned in many ways, and all require several external conditions. If these legal, fi scal, and institutional criteria are not met, then service delivery will not be effi cient. Consequently, by changing some crucial conditions, effi ciency gains can be realized, irrespective of the changes in expenditure assignment. Allocation of services cannot be designed properly unless all these conditions are harmonized. Formal changes in basic legislation on expenditure assignment are not suffi cient for determining a "better" hierarchy of services. Th e art of expenditure assignment is to defi ne the conditions that are needed most to improve service effi ciency. In this chapter we summarize: (a) Hungary's experiences in the 1990s in modernizing the assignment of public functions and expenditures, decentralizing responsibilities, and measuring the eff ects of economies of scale in public services, and (b) the direction of further modernization and preconditions for change.