Fiscal Decentralization Task ForceFiscal Decentralization Task Force

2007 REPORT2007 REPORT

TF on Fiscal DecentralizationTF on Fiscal Decentralization

Two meetings: Two meetings: Planning: June in Skopje Planning: June in Skopje Launching: November in SofiaLaunching: November in Sofia

Five project ideas developed Five project ideas developed Three projects have been started:Three projects have been started:

- Budget Negotiation project (funded by SDC)- Budget Negotiation project (funded by SDC)

- Cost Estimation of Municipal Services - Cost Estimation of Municipal Services (GTZ contract with NAMRB)(GTZ contract with NAMRB)

- Local Property Tax Administration - Local Property Tax Administration

(GTZ contract with SCTM)(GTZ contract with SCTM)

TF on Fiscal DecentralizationTF on Fiscal Decentralization

Objectives:Objectives:

-- support municipalities in financial support municipalities in financial managementmanagement

-- create and implement successful create and implement successful policy for fiscal decentralisationpolicy for fiscal decentralisation

Budget Negotiations ProjectBudget Negotiations Project

Questionnaire sent to members, 7 responses Questionnaire sent to members, 7 responses – Regulations on budget preparationRegulations on budget preparation

– Involvement in budget approvalInvolvement in budget approval

– Budget implementationBudget implementation

Foreseen results (June, 2008):Foreseen results (June, 2008):

1.1. Recommendation on legal regulationsRecommendation on legal regulations

2.2. Model agreement with MoF (2 options)Model agreement with MoF (2 options)

3.3. Arrangements with the Government Arrangements with the Government 44

Cost Estimation of Municipal Services Cost Estimation of Municipal Services ProjectProject

Project proposal approvedProject proposal approved

Pilot services agreed: Pilot services agreed: – KindergartenKindergarten– Primary schoolPrimary school– Building permitsBuilding permits

Methodology will be designedMethodology will be designed

Testing in 24 municipalities (6 countries)Testing in 24 municipalities (6 countries)

Handbook and training program (December Handbook and training program (December 2008)2008) 55

Local Property Tax Administration Local Property Tax Administration ProjectProject

Project proposal approvedProject proposal approved

ToR for country reports (January, 2008)ToR for country reports (January, 2008)

Country reports with case studies are due Country reports with case studies are due in May, 2008in May, 2008

Manual on local property tax collectionManual on local property tax collection

Proposals on capacity development Proposals on capacity development (December, 2008)(December, 2008)

66

Projects under preparationProjects under preparation

To be prepared by the end of 2008:To be prepared by the end of 2008:

1.1. Local government borrowing (RFLA)Local government borrowing (RFLA)

2.2. Program budgeting at municipal level, Program budgeting at municipal level, linked to cost estimation project (AKM)linked to cost estimation project (AKM)

3.3. Municipal Finance Database Municipal Finance Database

Other ideas to be designed in 2009:Other ideas to be designed in 2009:

Citizen participation in budgetingCitizen participation in budgeting

Benchmarking municipal financesBenchmarking municipal finances77