Fiscal decentralisation was implemented in 2004 following enactment of the State Budget Law in 2002. The National Assembly together with the Provincial People's Councils plays a central role in budget allocations and transfers from central to local government. The budget planning process uses a mix of top-down and bottom-up approaches, but sub-provincial level consultations, particularly involving the communes, remain marginal. Pro-poor fiscal transfers can help reduce spatial inequalities. As part of decentralisation, equalisation mechanisms were put in place to transfer budgetary resources to provinces to meet overall national development objectives. By allocating more central budgetary resources to lagging provinces, the aim is to better address local needs through decentralised budget management.