Title: Fiscal decentralisation and public governance in Lebanon

Authors: Armond Manassian, George Majdalany

Addresses: Olayan School of Business, American University of Beirut, P.O. Box 11-0236, Riad El-Solh/Beirut 1107 2020, Lebanon. ' Dalkia Middle East, P.O. Box 293866, Dubai, UAE

Abstract: The Lebanese tax system has many structural weaknesses and is in need of reform, specifically at the level of municipalities, or sub-governments. At this level there is a lack of clear delineation of responsibilities from the central government, expenditure bottlenecks, and weak fiscal and managerial capabilities. These constitute major impediments to efficiency and growth. The present study aims to investigate the global trend of fiscal decentralisation from central to local governments, as a means of improving the Lebanese tax system through fundamental changes. It is believed that the process of tax reform will help alleviate the problems of public debt and promote the growth and development of the national economy. Documents from the Lebanese Ministry of Finance were translated into English and analysed in conjunction with findings from international and Lebanese studies on municipalities and sub-governments. These methods were used to provide an in-depth study of fiscal decentralisation in Lebanon.

Keywords: fiscal decentralisation; taxation; expenditure assignment; revenue assignment; accounting; Lebanon; public governance; tax systems; public debt; economic development.

DOI: 10.1504/JIBED.2011.038032

Journal for International Business and Entrepreneurship Development, 2011 Vol.5 No.3, pp.249 - 268

Published online: 28 Feb 2015 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article