Macedonia Local Government Activity
Start date: July 30, 2007
End date: June 30, 2011
Project budget: $5,986,978
Implementer: ARD, Inc.
Objectives
Increase the financial management capacity and accountability of municipalities so that they are able to borrow from private credit markets, are capable of generating own-source revenues, and less dependent on central government transfers. Increase municipalities’ transparency and accountability to citizens.
Components
1. ntergovernmental Finance Policy
2. Accounting, Budgeting and Financial Management
3. Planning, Capital Budgeting and Municipal Credit
4. Tax/Fee Collection and Own Source Revenue Generation
5. Local Economic Development
6. Transparency and Accountability
Achievements/Impact
Key systems for local property tax administration and financial management have now been installed in the 20 municipalities not covered by the previous USAID project. This has standardized local property tax administration and financial management across the country, and dramatically streamlined coordination between local governments and the Ministry of Finance (MOF). Property tax collection per capita has increased dramatically; municipalities continue to move into Phase II of decentralization; and numerous municipalities have received MOF authorization to borrow. MLGA facilitated the first municipal capital improvement loan in Macedonia, using its guarantee fund (DCA). With MLGA’s support, five municipalities underwent external financial audits for the first time. In addition, two municipalities obtained internationally recognized credit ratings, and five more are in the process.
Sustainability/Legacy
By building the capacity and improving the performance of key local democratic institutions, such as the Association of Municipalities (ZELS), they have become more sustainable and able to continue pursuing decentralization reforms. ZELS has become the primary voice of municipalities’ interests and opinions, has effectively lobbied for adjustments that support municipal interests and is a leader in defining the policy framework for decentralization.
Contact Information
Contact at USAID:
Chief of Party: Gjorgi Josifov; gjosifov@mlga.com.mk
Information Officer: Mevlija Grbovic; mgrbovic@mlga.com.mk
Website: www.mlga.com.mk