Inadequate local government financing

Inadequate local government financing is caused and compounded by several factors. Towns tend to be caught in the dilemma that, while central government (due to the worsening economic situation or to ideological reasons) is unable or unwilling to fulfil its obligations, there is also reduction of their own revenues, caused by the exodus from the inner city. Taxpayers who leave tend to be relatively more prosperous than those who stay, so that government yield of local taxes decreases while an increasing percentage of expenditure goes to the support of the needy inhabitants who remain in the city.

Excessive reliance by local government on grants, or on unexpected increases in them, can result in poor use of public finances. Grants can encourage recipients to be less efficient and can decrease the fiscal autonomy of local regions.

1. Lack of funding for infrastructure
2. Lack of funding
3. Insufficient operating capital
4. Inadequate city governance
5. Diminishing capital investment in small communities
6. Decline in government expenditure

1. Undiversified tax base
2. Unbudgeted child education
3. Insufficient utility revenue
4. Failure of public authorities to assist in financial investment

1. Unstructured local government in small communities
2. Unethical practices in local government
3. Insufficient public land upkeep
4. Insufficient means for community initiative
5. Hostilities between central and local governments
6. Economic dependence
7. Dependency on local authorities
8. Delusions over responsibility for community improvements
9. Deficient social planning

1. Socio-economically inactive population
2. Limited national credit accessibility
3. Inappropriate local administrative organization
4. Inadequate management of government finances
5. Inadequate domestic savings
6. Bureaucracy as an organizational disease

1. Prejudicial community self-reliance

1. Underutilized government resources
2. Over-acceptance of socio-economic dependency

1. Securing government subsidies
2. Relying on grants
3. Promoting best value in local authorities
4. Improving financing by local government
5. Financing local government

1. Reliance
2. Inadequacy
3. Crisis
4. Excess