Table 1. A Representative Assignment of Expenditure Responsibilities


return to Expenditure Assignment site index	Contributor: World Bank Author: Decentralization Thematic Team Contact: Jennie Litvack

U=Supranational responsibility	ICB=Independent central bank	N=National government
S=State/provincial government	L=Local government	P=Non-government sectors/civil society

Table 1. A Representative Assignment of Expenditure Responsibilities
Function	Policy Standards & Oversight	Provision & administration	Production & Distribution	Comments
Interregional & International conflicts resolution	U	U	N, P	Benefits & costs international in scope
External trade	U	U, N, S	P	Benefits & costs international in scope
Telecommunications	U, N	P	P	National regulation not feasible
Financial Transactions	U, N	P	P	""
Environment	U, N, S, L	U, N, S, L	N, S, L, P	Externalities of global, national, state and local scope
Foreign Direct Investment	N, L	L	P	Local infrastructure is critical
Defense	N	N	N, P	Benefits & costs national in scope
Foreign Affairs	N	N	N, P	""
Monetary policy, currency, banking	U, ICB	ICB	ICB, P	Independence from all levels essential. Some international role for common discipline.
Interstate commerce	Constitution, N	N	P	Constitutional safeguards important for factors and goods mobility
Immigration	U, N	N	N	U due to forced exit
Transfer payments	N	N	N	Redistribution
Criminal and civil law	N	N	N	Rule of law, a national concern
Industrial policy	N	N	P	To avoid beggar-thy neighbor policies
Regulation	N	N, S, L	N,S, L, P	Promotes regional equity and internal common market
Fiscal Policy	N	N, S, L	N, S, L, P	Coordination is possible
Natural Resources	N	N, S, L	N, S, L, P	Promotes regional equity and internal common market
Education, Health & Social Welfare	N, S, L	S, L	S, L, P	Transfers in kind
Highways	N, S, L	N, S, L	S, L, P	Benefits and costs of various roads vary in scope
Parks & Recreation	N, S, L	N, S, L	N, S, L, P	""
Police	S, L	S, L	S, L	Primarily local benefits
Water, sewer, refuse, fire protection	L	L	L, P	""