Revenues and expenditures structure by levels of government

Different levels of government share responsibility for providing public goods and services. Central and sub-central governments (state and local) also vary in terms of their ability to levy taxes and collect social contributions. These differences could be explained by historical, economic, institutional and political factors. Commonly, sub-central governments are responsible for the provision of services and could be considered better equipped than central governments to obtain information on local needs and better placed to tailor public services accordingly.