Local Government Finances in Macedonia Today: Possible Reforms for Tomorrow

In 2005, Macedonia began a two-phased decentralization process in which the national government began to transfer to local governments significant new competencies. As of 2009, about half the country's 86 jurisdictions have entered the so-called second phase by assuming very significant new soc...

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Bibliographic Details
Published in:Policy File 2009
Main Author: Levitas, Anthony
Format: Report
Language:English
Subjects:
Budgets/Expenditures
Government
Urban Institute
Online Access:Request full text
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Summary:In 2005, Macedonia began a two-phased decentralization process in which the national government began to transfer to local governments significant new competencies. As of 2009, about half the country's 86 jurisdictions have entered the so-called second phase by assuming very significant new social sectors responsibilities, particularly the responsibility for financing and managing pre-tertiary education. This study analyzes the funding of local governments in Macedonia today, and whether the current intergovernmental fiscal system provides adequate funding to the local government level. In doing so, the study relies on a new local government finance data base to present a picture of how local government finances have evolved over the last three years. Based on this analysis, the study provides a concrete proposal for some initial reforms that would improve the adequacy, efficiency, and equity of intergovernmental financial relations in Macedonia.