MRRD with a project for fiscal decentralization and improvement of financial management in municipalities

The Ministry of Regional Development and Public Works is starting work on the project "Development of fiscal decentralization and improvement of financial management at the local level in Bulgaria". Its purpose is to support the financial autonomy of municipalities in our country in accordance with European practices and standards. As a result of its implementation, the improvement of the legal, financial and strategic framework for fiscal decentralization is expected.

An introductory meeting on the project was held in a hybrid format with the participation of representatives from the General Directorate for Supporting Structural Reforms at the European Commission and the Expert Center for Good Governance at the Council of Europe, the Ministry of Internal Affairs and Communications, the Ministry of Internal Affairs and Communications and the Association "Forum Civic Participation". 

During the implementation of the project, challenges will be identified and possible solutions will be developed. Workshops, capacity building activities and public consultations are planned. A technical report will analyze the existing legal, administrative and operational framework of the municipalities. A report will be prepared with recommendations for improving the legislative and fiscal framework on the basis of balanced and effective decentralization. As a result, a document will be developed with recommendations for administrative, regulatory and legislative changes in the financing of local authorities, based on European practice. At a later stage, trainings and the compilation of training materials are planned, which will meet the needs of local authorities and will contribute to the development of effective, responsible and transparent institutions at the local level. 

The project is financed by the European Union through the Technical Assistance Instrument (TSI) and implemented by the Council of Europe in cooperation with the European Commission. Its budget is 611,112 EUR. The deadline for its implementation is until the end of February 2024. The project also involves the Ministry of Finance, NSORB, interested organizations or institutions in Bulgaria with special expertise and experience on the project's topics and access to a network of national experts, etc. The results of the project will be the subject of discussions in the Council on Decentralization of State Administration at the Council of Ministers and the National Platform of Partners for Good Democratic Governance at the Local Level. 

Source: MRRD