Municipalities demand financial decentralisation again

Municipalities insisted on financial decentralisation again during their last general meeting for the 2007-2011 mandate.

Local authorities demanded that a greater part of taxes be collected and remain at their disposal. For this reason, they proposed the introduction of new levies on arable and non-arable land, and for part of VAT and individual income tax to remain in local budgets.

“It is high time for real fiscal decentralisation but incentives for small municipalities must be planned as well,” said Dora Yankova. Chairperson of the National Association of Municipalities in the Republic of Bulgaria (NAMB).

Mayors pointed out the three-fold reduction in the State subsidy, from BGN 240,000 to BGN 70,000 is a problem that small municipalities have to deal with.

Financial corrections under the Operational Programmes, the lack of capacity ensuring the absorption of EU funds and the late payments under the Rural Development Programme remain issues which municipalities have to address. Larger municipalities face similar issues.

“New tasks and responsibilities cannot be assigned without clear indications how these will be financed,” said Stanislav Blagov, Mayor of Svishtov.

Rosen Plevneliev, Minister of Regional Development and Public Works stated for Klassa that financial decentralisation has been included in the Government's plans for 2012-2013.

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