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The 7th NALAS Fiscal Decentralization Report is out!

31 January 2019

The Network of Associations of Local Authorities of South East Europe (NALAS) has published the seventh edition of its Fiscal Decentralization Report aimed at providing policy-makers and analysts with reliable comparative data on municipal finances and up to date information on intergovernmental fiscal relations in South–East Europe.

The report is structured in four sections. The first reviews the data used in the report and discusses some basic methodological issues. The second provides an overview of the structure and functions of municipal governments in the region. The third section examines selected indicators of macro-economic performance and fiscal decentralisation. The fourth one focuses on the evolution of intergovernmental finances in each NALAS’ member country or entity.

Among the main findings of the report are:

  • The ongoing tendency of concentration of people in capital and metropolitan cities, despite the region’s diversity in terms of territorial organization.
  • Local government challenges to provide better services and improve the quality of life of citizens are exacerbated by a general stagnation or deterioration of local finance arrangements
  • In many places in the region municipalities are underfunded, and central governments are not giving them a fair share of the overall fiscal pie
  • The level of local fiscal autonomy is decreasing in many SEE countries
  • Local government powers to set and collect taxes, fees and charges are in continuous change

 

Find more outcomes of the report here.

Read the full report here.