Urban Finance and Fiscal Federalism

Urban transformation depends fundamentally on how cities are financed. Across the Global South, municipalities face widening gaps between infrastructure needs and available fiscal resources. Inter-governmental transfers, local taxation, land-based financing, and municipal borrowing operate within complex federal or unitary fiscal systems that often limit autonomy. CIRUS studies the political economy of urban finance, including the land–finance nexus, fiscal decentralisation, creditworthiness, and capital market access. We explore how fiscal frameworks shape incentives, investment priorities, and spatial development patterns. Sustainable urban systems require not only increased resources, but predictable, transparent, and accountable fiscal arrangements that strengthen local capacity while maintaining macroeconomic stability.