Intergovernmental Finance in Hungary illustrates the decade-long transformation of the Hungarian subnational system with a focus on subnational finance. This comprehensive guide presents government practitioners and other readers with rich real-life evidence on most municipal activities. It builds upon dozens of policy analyses prepared by local and international specialists and covers various aspects of municipal life, such as: revenue and expenditure assignments, taxation, intergovernmental transfers, strategic planning, outsourcing, public-private partnership, utility regulation, asset and liability management, municipal enterprises, household arrears, project financing, borrowing, and insolvency resolution. Part one is an overview of developments and policy proposals in the 1990s. Part two provides 28 case studies that address: how to enhance the intergovernmental system, how to build local government expertise in strategic management and finance, and how to design a competitive framework for financing subnational governments. Hungary"s early and substantive reforms have provided ample opportunities to test and measure in a transition economy the impact of decentralization structures and instruments that have worked well in developed nations. The process is still incomplete and the results are imperfect, but Hungary"s transition and its innovative and adaptive local governments have proven the merits of fiscal decentralization.