ABSTRACT
The term planning and budgeting is often used, but the concept is rarely defined or unpacked. This chapter illustrates how the scope of subnational planning and budgeting is determined by the governance context specific to each country, and how service delivery responsibilities are shared between tiers of governance. It looks at planning and budgeting as a political process of collective, democratic decision-making on the use of public resources. Whereas direct citizen involvement is useful to build or rebuild the social contract between citizens and the state, the aim is to reach a stage where elected representatives can be trusted and entrusted to take decisions on behalf of all and in the interest of all.
