• Monday, 08 July 2024

Gov’t discusses reforms for greater financial autonomy of municipalities

Gov’t discusses reforms for greater financial autonomy of municipalities
Skopje, 27 July 2021 (MIA) – The Government at Tuesday’s session on the process of institutional decentralization has reviewed and adopted amendments to a document on promoting the process of fiscal decentralization, including criteria for distribution of VAT grant in accordance with simulations with draft conclusions. “The Government decided to set up a working group to prepare appropriate legal solutions for the establishment of an Agency for Regional and Local Development, with one representative each from the Ministry of Justice, the Ministry of Local Self-Government, the Ministry of Finance, the Ministry of Political System and Inter-Community Relations, the Bureau for Regional Development and the Association of the Units of Local Self-Government (ZELS), whose work will be coordinated by the Ministry of Local Self-Government,” the Government said in a press release. The conclusions of Tuesday’s session include an obligation for the Ministry of Justice, the Ministry of Finance and the Bureau for Regional Development, as well as ZELS, to nominate one representative each in the working group within ten days from the adoption of these conclusions. “This working group should submit appropriate legal solutions for setting up an Agency for Regional and Local Development to the Government of the Republic of North Macedonia no later than the end of 2021,” reads the press release. In addition, the Government instructed the Ministry of Finance to submit for review the draft-law amending the law on financing of local self-government units to all competent ministries and to ZELS, as well as prepare draft-legal solutions regarding the above priorities by September 2021 and submit them to the Government.