Considerations for fiscal decentralization: guidelines for the Peruvian experience

This study examines the process of fiscal decentralization in Peru, analyzing its implications for the efficiency of public spending, democratization, and social control over public management. The research is based on a comparative analysis of decentralization experiences in countries such as Argentina, Brazil, and Colombia, identifying lessons learned and formulating recommendations to improve the country’s fiscal framework. The current legislative context and the fiscal situation of subnational governments were evaluated, taking into account variables such as revenues, expenditures, and intergovernmental transfers. The methodology includes a structural analysis of the regulatory framework and an empirical approach to regional tax collection. The results indicate that the ongoing decentralization process carries risks of fiscal destabilization if clear rules and monitoring mechanisms are not established. Finally, the study suggests that to optimize decentralization, it is crucial to formulate resource allocation criteria that take into account equity, efficiency, and fiscal effort in subnational governments, proposing a more transparent and predictable transfer scheme. (Abstract and audio: Department of Economic Publications)