Governance and Fiscal Federalism in Sudan, 1989–2015: Exploring Political and Intergovernmental Fiscal Relations in an Unstable Polity

Abstract

This report analyses the implementation and impact of decentralisation in Sudan: To what extent has the efforts to implement decentralisation policies actually devolved power and fiscal resources to sub-national levels, for the benefit of the local populations? The present research confirms what other studies have concluded: that in Sudan the centre remains the ultimate arbiter when it comes to the distribution of economic and political resources between the centre and local states and regions. Economic control and fiscal transfers in Sudan remain relatively centralised. There is no systematic relationship between actual transfers to states and poverty reduction. Government expenditures for states have increased at the same time that state-generated revenues have decreased, and a fair and equitable system of fiscal equalisation and gap-filling is absent. Finally, there exists a mismatch between fiscal decentralisation and the political set-up. The prevailing features of governance in Sudan do therefore not embrace genuine political and fiscal decentralisation.