Kiril Kiryakov, USAIDBulgaria Local Governance Advisor

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Fiscal Decentralization Development in
Bulgaria in the Period 2002-2005. Key results.
What lies ahead?

• Kiril Kiryakov, USAID/Bulgaria Local Governance
  Advisor
• Emil Savov, Program Director, RTI Sofia

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FISCAL DECENTRALIZATION DEVELOPMENT 2002
2005Key Results Macro-Economic Indicators
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FISCAL DECENTRALIZATION DEVELOPMENT 2002
2005Key Results
Municipal Own Revenues in BGN mil (1 BGN 0.5
Euro)
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FISCAL DECENTRALIZATION DEVELOPMENT 2002
2005Key Results
Share of municipal own revenues of total revenues
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FISCAL DECENTRALIZATION DEVELOPMENT 2002
2005Key Results

• Municipal Borrowing

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Municipal Infrastructure Financing Sources (BGN
mil)
FISCAL DECENTRALIZATION DEVELOPMENT 2002
2005Key Results
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Municipal Infrastructure Financing
FISCAL DECENTRALIZATION DEVELOPMENT 2002
2005Key Results
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FISCAL DECENTRALIZATION DEVELOPMENT What Lies
ahead?

• Ensure adequate implementation of tasks
  stipulated in the Government of Bulgarias
  Decentralization Program (2006-2009)
• Expand municipal own source revenues
• Increase municipal capital investment

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Expanding municipal own source revenues
FISCAL DECENTRALIZATION DEVELOPMENT What Lies
ahead?

• Pending constitutional amendment introducing
  local taxing powers
• New local taxation legislation
• Outpacing growth rate of local taxes over other
  revenues
• Granting authority to local governments to
  introduce new local fees
• Introduce flexibility in granting taxing powers
  to municipalities, which meet certain criteria

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Increasing municipal capital investment
FISCAL DECENTRALIZATION DEVELOPMENT What Lies
ahead?

• Secure adequate levels of investment financing
  for all municipalities
• Provide Stability in Intergovernmental Transfers
• Utilize EU investment funds

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Increasing municipal capital investment
FISCAL DECENTRALIZATION DEVELOPMENT What Lies
ahead?

• Long-term financing structure
• Incorporate capital expenditures in the general
  subsidy for delegated activities
• Capital Subsidy for municipalities with low
  revenue base
• Set up a fund, managed by the government, for
  co-financing of EU grants and project development