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Guide to Municipal Finance

Guidance and systemization of experiences

This Guide to Municipal Finance describes the current issues in municipal finance and the ways in which local governments finance services and infrastructure. It sets out a basic economic framework that is used to evaluate the different aspects of municipal finance and that can be used by readers to evaluate other options. The Guide emphasizes that responsible, accountable, and efficient local governments need to raise their own revenues as much possible, adhere to an open and visible municipal budgetary process, and engage in transparent and prudent financial management.

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