The overall aim of the initiative “Rebuilding Local Fiscal Space” is to provide tools and recommendations on improving local fiscal space in light of the challenges caused by COVID-19, through a case-by-case review and analysis of the core factors affecting fiscal space in a range of selected (very different) sub national governments (SNGs). The focus of the initiative is on the four factors mentioned above (and further detailed below), which contribute to the loss in fiscal space. It covers a review of possible measures to rebuild local fiscal space, accelerate national economic recovery and restore trust in public institutions, all of which are core responsibilities of both central and local governments. The initiative will highlight and seek to measure and understand the four factors and will work with central and SN governments on strengthening the four factors to accelerate fiscal and economic recovery.