OSCE Mission to Skopje helps municipalities become financially sustainable

SKOPJE, 27 November 2007 - The financial situation of local self-government units and ways to improve it in light of the second phase of fiscal decentralization are being discussed at a conference that opened in Skopje today.

The event, supported by the OSCE Mission, brought together representatives of the central and local government, and the international community.

A report on the fiscal system in municipalities and on policy improvements in the system of local government financing, prepared by the local NGO Urban Rural Consulting, was presented to the participants.

"Successful implementation of fiscal decentralization will ensure sustainable municipalities, capable of carrying out their tasks and responsibilities and will provide better services for the citizens," said Ambassador Natalya Drozd, the Deputy Head of the OSCE Mission.

Goran Angelov, the Manager of Urban Rural Consulting, said: "The project activities represented an attempt to objectively illustrate the current financial situation at local level, identify the 'bottle necks' that hinder the process and propose directions that are important if we are to create well-functioning, transparent and accountable local government in the country in order to strengthen local capacities for administration of own revenues."

The OSCE Mission will also support a meeting of tax administration officers from all local self-government units and central government officials, which will be organized by the Association of Financial Officers on November 29 in Skopje.

Both events are part of the OSCE Mission's programme for monitoring the progress of the decentralization and providing assistance to foster the process.