Ministry of Finance works on finding the best model for establishing Performance Fund and Equalization Fund aimed at strengthening the fiscal capacity and increasing the revenues of municipalities. It is planned for the municipalities showing positive results and higher own revenue collection to be awarded funds from the Performance Fund, while for municipalities with lower revenues, but also showing fiscal effort and good results in collecting their own revenues to be awarded funds from the Equalization Fund, – Minister of Finance pointed Fatmir Besimi pointed out at the occasion of launching the USAID Project “Strengthening Resource Mobilization Activity”. Her Excellency, Ambassador of the United States of America, Kate Marie Byrnes, Minister of Local Government Goran Milevski, Mayor of Veles and President of the Financing Commission within the Association of Local Government Units, Ace Kocevski and the USAID Project Director, Ginka Kapitanova delivered a speech at this event.
Ministry of Finance, together with the United States Agency for International Development (USAID) and the United Nations Development Programme (UNDP) are currently carrying out activities and measures under the priorities set within the fiscal decentralization reform.
For the purpose of strengthening the fiscal decentralization, many activities and measures have been envisaged, grouped in three pillars – improved fiscal capacity and increased municipal revenues, strengthened fiscal discipline and transparency and accountability as regards municipalities’ operations, – Besimi said, thereby stressing that the ultimate goal of this process is achieving better quality of public services, higher economic growth and better living standard.
Minister hereby pointed out that public consultations and discussions with ALGUs and the stakeholders on reform proposals would start in the course of this month, as well as throughout June, in coordination with the Working Group entrusted with the continuation of the decentralization process, established by the Government, with the Ministry of Political System, Ministry of Finance, Ministry of Local Government and ALGUs as its members.
“One of the government priorities is continuation of the decentralization process to the end of greater democratization, improved (better quality and expanded) public services and intensified local development in the interest of the citizens. In the coming period, municipal development policies, i.e. fiscal decentralization and equal regional development, will continue to be implemented, to the end of strengthening the municipalities’ financial sources, at the same time increasing the accountability and the transparency of their operations to the end of bringing the municipalities closer to the citizens”, Minister pointed out.
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