Lkhagvadorj Ariunaa

Fiscal Federalism and Decentralization in Mongolia Lkhagvadorj Ariunaa

Fiscal federalism has been an important topic among public finance theorists in the last decades. developing and transition countries have developed a variety of forms of fiscal decentralisation as a possible strategy to acheive effective and efficient government structures. As a formar socialist country Mongolia has had highly centralised governmental sector. Mongolia has introduced a number of decentralisation measures, which followed a top down approach and were slowly implemented without any integrated decentralisation strategy in the last decade. the critical problem associated with intergovernmental transfers is that there is not a stable, predictable and transparent system of transfer allocation.