Skopje, 26 September 2024 (MIA) - Strategies for raising municipal income, promotion of the process for decentralization and promotion of transparency and accountability of the local self-government were the topics discussed at Thursday's forum on sustainable resource mobilization and decentralization strategies hosted by USAID within the Strengthening Resource Mobilization Activity project.

The forum was addressed by Minister of Local Self-Government Zlatko Perinski who said it is significant since it helps municipalities in terms of strengthening their capacities and accountability in public finance management. 

“We set a goal for all local self-governments to be a part of the e-portal and provide a certain set of their services to the citizens by the end of 2026. We will also make it possible for them to collect property tax online, as well as heighten their focus on issues related to collecting income from sources such as property tax and municipal taxes,” Perinski said. 

U.S. Deputy Chief of Mission Nicole Varnes said decentralization is not only a transfer of power, but that it should also ensure that local self-governments have the tools and resources to fulfill the needs of their citizens. 

“I encourage you to shift the limits of what is possible. Regardless of whether it is done through a public-private partnership, improved tax collection systems or transparent budgetary processes, cooperation and innovation can significantly boost the quality of life of the citizens throughout the country,” Varnes said. 

Regarding the ability of municipalities to become independent of the central government, improve tax collection and use the funds of EUR 250 million announced by the Government, Tetovo Mayor Bilall Kasami said most municipalities have the necessary capacities, but, he said, unfortunately not everyone is making use of local resources, pointing to the example of Tetovo. 

“Unfortunately, the previous structures didn’t fully utilize the possibilities provided by the current level of decentralization, and that’s why this was our first commitment. In order to seek additional resources from the central government and international financial institutions, we must build the capacities necessary to use and collect our local income. In the Municipality of Tetovo we are working seriously on this,” Kasami said. 

University professor Borche Trenovski noted that 30 percent of the funds of the municipalities are made up of their own budgets, while the rest are capital transfers from the central government, pointing to the problems of the capacities of municipalities to collect and manage public finances. 

Project director Bardhyl Marku said the basic task that mayors should focus on is improving the collection of their own local income, above all property tax, local taxes and other fees. 

USAID's Strengthening Resource Mobilization Activity is a 5-year project, assisting North Macedonia's municipalities to raise and independently manage the resources necessary to fund services demanded by its citizens 

Photo: MIA