Environmental fiscal reforms through decentralisation for sustainable development and poverty eradication

Abstract

Environment degradation and augmentation of poverty are causing a serious peril not only for the present but also for future generations. The situation is aggravated day by day. This is mainly due to the distortion in the market systems. Environmental Fiscal Reform (EFR), through decentralisation measures, can rationalise tax arrangement and distribute resources effectively and efficiently. The devolution of power is a step forward, but it requires corresponding fiscal decentralisation, institutional development, and political will. The lower tiers of government have meagre resources and poor skills, infrastructure, and institutions, which need improvement. EFR can generate benefits in terms of fiscal revenue, environmental outcomes, and poverty reduction in local districts. It can also produce greater opportunities for empowering and serving the poorest people, and, as a result, also support sustainable development. © The Pakistan Development Review.