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1.Autonomy.Decentralized states should be independent
2.Revenue adequacy. Local government units should have adequate finance to meet their obligations.
3.Equity. Funds for local governments should vary positively with the need factors and inversely with their own capacity to tax.
4.Predictability.Local governments should be able to predict revenue available to them and transfer to various purposes.
5.Simplicity.Revenue sharing should be simple and transparent so that local government and citizens understand how much is being shared.
jerop5614 answered the question on October 10, 2018 at 13:22
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