Skopje, 6 December 2023 (MIA) - The progress achieved in fiscal decentralization and the increase of municipal revenues from VAT and personal tax to six percent is a trend that must continue, said Minister of Local Self-Government Risto Penov at the annual conference on Decentralization and Local Governance titled "Citizens First Shaping Future for Improved Local Services," which is being held December 6-7, organized by the United Nations Development Programme (UNDP) and Ministry of Local Self-Government.

Minister Penov noted that the next challenge is the digitization of local services, which has already started and will intensify.

"The digitization process is complex, with many institutions and steps, but with support from the donor community, we can immediately start taking concrete measures," Penov said, adding that managing public finances, especially collecting local taxes and fees, is a priority.

According to the Minister, a recent survey of citizens' satisfaction with the quality of life in municipalities has shown that they are generally satisfied with the services, although there is a slight decrease in satisfaction compared to last year in the way those municipalities are managed, including the way mayors and local councils manage citizens' views and opinions, and an increase in their opinions on corruption from 5 percent in 2017 to 23 percent in 2023.

Association of the Units of Local Self-Government (ZELS) President Orce Gjorgjievski said that ZELS will not deviate from their request to ensure the financial stability of local self-governments.

"The request is to transfer at least 10 percent of the value-added tax and 50 percent of the personal income tax, which would only bring us closer to local governments in the region," Gjorgjievski said.

Ambassador of Switzerland to North Macedonia, Véronique Hulmann, emphasized in her address that in the last few decades, political motivations have often driven decentralizing efforts.

"Strengthening economic efficiency and public accountability are key pillars in supporting decentralization. Transparency can be improved by strengthening digitization, broadcasting municipal council sessions, and increasing oversights of budget execution to improve citizens' involvement," Hulmann stressed.

Sweden’s Ambassador to North Macedonia, Ami Larsson Jain, stated that public services can be adapted to meet citizens' specific needs, through decentralization, which can result in quality and more efficient services.

"Since local governments are more accountable to the citizens, decentralization can lead to a more efficient distribution of funds. Local governments, rather than the central government, can identify and prioritize investments depending on the needs of communities. This encourages greater participation in the democratic process," Larsson Jain said.

UNDP Resident Representative to North Macedonia, Armen Grigoryan, highlighted that local development is an important component for the broader progress of the country as well as the quality of life for citizens.

"With this in mind, UNDP takes part in municipal development and decentralization, which corresponds to UN's goals for sustainable development. This is directly related to the goal for an efficient, reliable, transparent and sustainable local self-government," Grigoryan stressed.

The conference will be held on Wednesday and Thursday, with discussion on various topics related to local self-governments and the development of local self-government units. ssh/ad/

Photo: MIA