Technical Assistance to Support the Second Phase of the Process of Fiscal Decentralization (Ministry of Finance/Commission)

Brief Description of Main Deliverables/Outputs:
Global objective Support the Government of the former Yugoslav Republic of Macedonia on policy development and improvements in the field of fiscal decentralization. Specific objective(s) Enhance the capacities of the Commission to deal with policy developments on fiscal Decentralization and effectively manage and monitor the second phase of the process of Decentralization.

Role on the Assignment

Activities completed:

Conducted an analysis of the transfer systems and formulas used of the central government to local self-government units (municipalities);

Conducted an analysis of the financial situation of the local self-government units (municipalities);

Provided indicators on the fiscal capacity of the local self-government units in the country (municipalities);

Produced quality benchmarks and criteria for measuring the financial development of local self-government (municipalities) in addition to the criteria used by the Committee;

Conducted an impact assessment of the first three months’ period of the start of the second phase of fiscal decentralization (July 1st – September 30, 2007).

Provided recommendations for improvements of the transfer systems and formulas used from the central government to local self-government units (municipalities); Provided conclusive outputs/tools that should be used by the Commission and all other stakeholders in the implementation of the fiscal decentralization process and monitored the progress of the remaining local self-government units (municipalities) for entering into the second phase of the fiscal decentralization process, as well as for developing of mechanisms for further improvement of the financial situation in the municipalities.

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