A project on fiscal decentralisation and improved local financial management is launched

The Ministry of Regional Development and Public Works started work on the project “Development of Fiscal Decentralisation and Improvement of Financial Management at Local Level in Bulgaria”. Its aim is to support the financial autonomy of municipalities in Bulgaria in line with European practices and standards. As a result, the legal, financial and strategic framework for fiscal decentralisation is expected to improve.

In a hybrid format, a project kick-off meeting was held with the participation of representatives from the Directorate General for Structural Reform Assistance at the European Commission and the Centre of Expertise for Good Governance at the Council of Europe, the Ministry of Regional Development and Public Works, the National Association of the Municipalities in the Republic of Bulgaria and the Association “Citizen Participation Forum”.

The implementation of the project will identify challenges and develop possible solutions. Workshops, capacity building activities and public consultations are foreseen. A technical report will analyse the existing legal, administrative and operational framework of the municipalities. A report will be prepared with recommendations to improve the legislative and fiscal framework on the basis of balanced and effective decentralisation. 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, training and training materials are foreseen that will respond to the needs of local authorities and contribute to the development of effective, accountable and transparent institutions at local level.

The project is funded 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 EUR 611 112. The deadline for its implementation is the end of February 2024. The project also involves the Ministry of Finance, the National Association of the Municipalities in the Republic of Bulgaria, interested organisations or institutions in Bulgaria with particular expertise and experience in the project topics and access to a network of national experts, etc. The results of the project will be discussed at the Council for Decentralisation of State Governance at the Council of Ministers and the National Platform of Partners for Good Democratic Governance at Local Level.