|
Parliament
passes
law
on
financing
of
municipalities
Macedonian
Information
Agency
(Sep
06,
2004) (MIA)
-
Parliament
deputies
adopted
Monday
the
Law
on
financing
of
local
self-government
units.
The
law
envisages
establishment
of
entirely
new
financial
relations
between
the
central
authorities
and
the
local
self-government,
i.e.
fiscal
decentralization
and
establishment
of
balance
between
the
local
authorities
and
financial
sources.
The
adoption
of
the
law
begins
the
implementation
of
the
fiscal
decentralization
in
two
stages,
beginning
from
January
1,
2005.
The
initial
stage
will
encompass
reallocation
of
means
from
the
state
Budget
and
budgets
of
funds,
which
finance
the
same
authorities
with
the
existing
system.
If
municipalities
fulfill
the
regulated
conditions
in
a
24-month
period,
the
freedom
of
deciding
will
be
enlarged.
In
case
municipalities
create
financial
instability,
they
will
be
controlled
by
the
state,
i.e.
Ministry
of
Finance
and
Revenue
Bureau.
Municipalities
will
fully
manage
property
taxes,
administrative
and
communal
taxes,
along
with
0,5
percent
from
personal
taxes.
Municipalities
will
also
acquire
2,5
percent
from
VAT.
According
to
the
new
financing,
municipalities
will
be
able
to
perform
their
legal
and
constitutional
functions
in
the
field
of
education,
culture
and
social
protection,
and
at
the
same
time
be
economically
sustainable,
having
more
funds
than
before.
A
novelty
in
the
law
is
that
the
local
self-government
units
will
be
able
to
encumber
in
the
state
and
abroad.
The
Ministry
of
Finance
and
the
Government
should
provide
an
opinion
on
the
foreign
credits.
Calculations
of
the
Finance
Ministry
show
that
municipalities
will
have
a
total
income
of
around
Denar
13,320,000,000
after
January
1,
2005.
mc/ik/15:22/mia/MTnet/
###
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2000
MIA
-
Macedonian
Information
Agency.
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