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Fiscal federalism in South Africa

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The constitutional change in South Africa in the 1990s brought about the decentralization of substantial budgetary responsibility to newly created provincial governments. This study captures the new assignment of functions and resources to the different spheres of government in South Africa and provides an assessment on the basis of a framework derived from fiscal federalism principles. It concludes that there is a substantial congruence between what can be viewed as theoretically desirable and what is outlined in the South African Constitution of 1996, but observes significant divergences between the Constitution and actual practice.

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