Decentralization of Education: The Affective Role of Fiscal Decentralization in Pakistani Education System(s)

Abstract

Fiscal decentralization is the devolution of financial decisions to the lowest level of administration. Financial decisions include revenue generation and expenditures on public services.This study qualitatively explored fiscal decentralization as a factor affecting decentralization of education in Pakistan. Data were collected from educational leaders (six DEOs and six high school principals) and six political leaders through interviews. The KP Local Government Act 2013 and the 18thAmendment to the Constitution of Pakistan were also used as the datasources. The participants reported inefficiency of the centralized fiscal system. All the participants associated hopes for positive and effective reforms through the aforementioned federal and provincial level legislation because they changed the way resources were distributed among social services departments district-wise. However, they showed great concerns over only ten percent revenue generation powers given to the provinces because that might lead to low fiscal powers of district governments. The study revealed that the process of fiscal decentralization in the province is very slow and henceveryslow progress in the decentralization of education was observed. The low fiscal powersaffect educationalexpenditures as the local governments either have low or no capacity to handle budgetary matters of the public school locally. The prevailing processof decentralization in education is mainly political and administrative as the provincial governments still approve the budgets for education. The study concludes with the recommendations that fiscal decentralization need to be focused and schools be given the opportunity to get funds from the local governments and the community. The local leaders mightbe trained and empowered to make fiscal decisions in the best interest of the institution(s).