Revamping public management by means of financial autonomy. An important issue when analyzing the local financial autonomy is the degree of decision making ability which is granted by the central administration to the lower level units. In no country are the local authorities enjoying full and unrestricted power over the accumulation of revenues and direction of expenses. The Central Government is perceived to care for the greater good of the whole nation, thus adjusting the scope and grandeur of financial flows of a particular jurisdiction, even though the later may have, at times, diverging views and priorities over the revenue sources and spending directions. This paper further examines the causes of the current situation of local financing and offers suggested course of action for a much needed reform.