In the last two decades an array of management techniques and practices have been adopted and implemented by most governments to ameliorate public administration. This was principally because most governments got ensnared in huge debts, operational inefficiency, and ineffectiveness in service delivery including lack of accountability from political elites and public servants. These problems emanated from the quaint methods of fiscal management that were implemented and practiced resulting in rampant corruption and feeble public services. This led to widespread disgruntlement and demand for good governance hence the rise of the New Public Management (NPM). Theories like public choice theory and principal-agent theory propelled the rise of the New Public Management (NPM) with its consonant reforms and practices of restructuring. The colonial-independence-globalization theory also gave impetus to the emergence of the NPM theory for most former colonies like South Africa which had colonialism of a special type. Most African countries including South
There are shared thoughts among scholars that fiscal decentralisation is a solution to the problems of poor public services in the local government. Fiscal decentralisation is the dispersal of financial responsibility to lower levels of government or other spheres of government. This study highlights various discourses on local self-government, especially fiscal decentralisation processes, local revenues, and the New Local Government philosophy of local government reform in South Africa. This research interrogates the importance of fiscal decentralisation as a tool to facilitate greater effectiveness and efficiency in local government. A qualitative research approach was used to obtain information. Through the review of the literature and selected official government reports, the study found that development in local government can be achieved through the effective decentralisation of responsibilities, fiscal policy management, fiscal decision-making authority and sufficient resources, including revenue collection authority to local authoritiesFiscal decentralisation requires a concerted effort in capacity-building and institutional fiscal reform and should, therefore, be associated with the strengthening of local authorities. Decentralisation can occur at the level of fiscal expenditures and revenues creation or sourcing. This paper
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