2013年-世界发展银行全球_South_East_Europe_Municipal_Finance_Review___Local_Government_Finance_in_the_Western_Balkans_110页_8mb

Summary of the South East Europe Municipal Finance Review

Core Content

The South East Europe Municipal Finance Review (MFR) provides an in-depth analysis of local government finance in the Western Balkans, focusing on the structure, composition, and trends in municipal revenue and expenditure. The report is part of a regional capacity building program aimed at strengthening the financial management capabilities of local governments and their associations.

The Western Balkans region has undergone a decade of decentralization reforms, leading to the establishment of a more stable institutional framework. However, the level of decentralization and the functions assigned to local governments differ significantly across countries. The MFR uses a 'bottom-up' approach to collect and analyze municipal finance data, which is often limited or aggregated in the region.

Key Findings

1. Decentralization and Institutional Framework

• The Western Balkans have a single-tier local government system, with Albania, Bosnia and Herzegovina, and Croatia having two-tier and three-tier systems respectively.
• Municipalities provide core utility services such as water supply, sanitation, solid waste management, local roads, and basic social services.
• In Serbia, Montenegro, and Republika Srpska (RS), central government plays a more dominant role in health, education, and social welfare.
• In Kosovo and Macedonia, municipalities have broader roles in primary and secondary education and primary health care.

2. Municipal Size and Structure

• The average population size of local government units in one-tier systems ranges from 23,000 in the RS to 59,000 in Kosovo.
• Countries with two-tier systems, such as Albania and Croatia, have a large number of small municipalities with populations below 5,000.
• Population density varies significantly, with the largest cities having over 1,600 inhabitants per km² in Serbia, while the RS has less than 200 per km².
• Capital cities dominate the local government system, with more than 15% of the population living in the capital in four of the seven countries. In Montenegro, 30% of the population resides in the capital city.

3. Local Government Revenue and Expenditure

• Local government revenue in the SEE region is dominated by grants and transfers, which account for more than 50% in Albania, Kosovo, and Macedonia.
• Own-source revenues vary from 15% in Kosovo to 82% in the RS.
• Local government expenditure typically ranges between 2-8% of GDP, with Kosovo and Macedonia having the highest shares due to their significant role in education and health.
• In Albania, Croatia, and Montenegro, general public services account for more than 50% of local expenditures.
• Education is the largest expenditure in Kosovo and Macedonia, making up 42.2% and 48.7% respectively.

4. Trends in Municipal Finance (2008-2011)

• Total local revenues increased in Albania, Kosovo, and Macedonia, but declined in Serbia, Montenegro, and Croatia.
• The decline in local revenues was not fully compensated by national transfers, as central government budgets also contracted.
• In Kosovo, local government expenditure increased significantly from 5.2% to 8.4% of GDP, driven by grants and transfers.
• In Macedonia, local expenditures increased from 4.3% to 5.6% of GDP.
• In Montenegro, local expenditures decreased from 5.5% to 3.9% of GDP.
• Per capita expenditure is generally low in the Western Balkans, averaging EUR288, compared to EUR2986.3 in the EU27. Croatia and Montenegro are exceptions, with per capita expenditure around EUR500.
• Albania has the lowest per capita spending, at 10% of the Montenegrin average.

5. Grants and Transfers

• Grants and transfers are a major component of local government budgets, especially in Albania and Kosovo, where they account for 69% and 85% of local revenues respectively in 2011.
• In Montenegro, the share of grants and transfers decreased from 26.4% in 2008 to 15.4% in 2010, then recovered to 20.8% in 2011.
• Shared taxes are a key funding source for Croatia and Montenegro, covering 50% and 12-13% of local expenditures respectively.
• Conditional and earmarked grants influence the financial discretion of local governments, especially in education and health.

6. Sub-National Borrowing and Debt

• Sub-national borrowing remains a minor source of revenue in the SEE region, with total accumulated local government debt at less than 1% of GDP.
• Even in countries like Montenegro and Serbia, where sub-national borrowing is more active, the debt levels are not significant.
• Strict borrowing regulations limit the role of debt in municipal finance.

7. Disparities and Equalization

• There are significant disparities in municipal finance across population size, urban/rural status, and city size.
• Capital cities tend to have higher concentrations of both revenue and expenditure.
• Equalization of expenditure needs and fiscal capacity is a challenge, with disparities increasing in some areas.
• Convergence is observed in others, particularly in poorest and richest municipalities.

Conclusion

The MFR highlights the importance of local governments in the Western Balkans and the need for better data collection and analysis to support evidence-based policy making. It also identifies key challenges in municipal finance, including disparities, limited financial capacity, and dependence on central transfers. The report suggests that disaggregated municipal finance data can provide a more accurate picture of local financial performance and help in capacity building and policy development.