 This act led to the transfer of power to local governments in an attempt to encourage citizen participation and further rural development.Regarding funding under the decentralization structure, local governments receive a majority of their funds in block grants from the national government, mostly as conditional grants but with some unconditional and equalization grants administered as well.Furthermore, local governments were given the power to collect taxes from their constituents, however this usually only accounts for less than 10 percent of the local government’s budget.