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Intergovernmental Fiscal Relations Directorate

The mission:

To account and transfer with justice and transparency the state budget transfers, to local government, to support and fill the necessary legal acts of fiscal decentralization, targeting revenue growth, increase efficiency and use, of public funds for local government.

The aim:

1. Identification on a regular basis the revenues from taxes and fees and increase their budgets in favor of LGU.
2. Ensuring a fair distribution as government transfers to local governments in accordance with the needs of LGU.
3. Monitoring, analysis and preparation of budget reports to LGU.

Functions:

1. Fiscal Decentralization

• To monitor the process of fiscal decentralization.
• To make studies and sets policies for the deepening and consolidation of fiscal decentralization with a view to expanding fiscal and financial autonomy.
• To perform studies and proposes criteria for allocation of state budget transfers to local budget.
• In accordance with the policies of the Ministry of Finance manages and to prepare the annual fiscal package for local government.
• To prepare for the heads, reports on the progress of fiscal decentralization with the relevant conclusions.
• To suggests ways to increase local revenues and expenditures using effectively.

2. Draft Budget

• To prepare guidelines for drafting the draft medium term (MTEF) and the following year, for LGU.
• To follow the process of drafting the draft budgets of units of local government provides and distributes information and documentation necessary for this purpose.
• To make studies and identifies studies conducted by prefectures, local governments, and encourages these units for the study of different problems for community development, especially in improving infrastructure services to the community.
•  To coordinate activities with other departments in the device with the respective departments in other line ministries, World Bank, F.SH.ZH, MADA, foundations and associations concerned and foreign donors for the development and implementation of projects and their financing in favor of local governments.
• To harmonizes and coordinate foreign assistance, which supports decentralization and local financial support for infrastructure.
• In cooperation with relevant departments in the General Department of Budget, identifies all the requirements and needs for investment in local government units and equip them with technical documentation for the fields that are in their jurisdiction or administration.
• To make studies and suggests policies to harmonize and increase the efficiency of local investment, regional and national.
 
3. Budget Implementation

• Upon approval of the annual budget law by Parliament, announces any local government unit to transfer the funds unconditionally to tune into the formula.
• To prepare guidelines for implementation of the budget, local government units.
• Identifies income and expenses for local government units, analyzes budget reports to local government and relevant conclusions holders.
• During the year, to follow and monitor the budget, delegated to local government units.
• To follow a systematic realization of investments for local governments funding from various sources and provides periodic analysis.
• In cooperation with local government units, to prepare and follow the procedures of expropriation in order to realize the investment of public interest.
• Based on the obligations established by special law, to assist and decide on borrowing local government units.
• To perform studies and suggests policies, to harmonize economic development with the regional and the national development policies.
• In cooperation with the Directorate of Public Investment, to follow the realization of investments local government units in education and health.

Directorate’s Products:

• The annual budget
• Guidelines for the design of the PBA
• Instructions for drafting the annual budget
• Guidelines for implementation of the annual budget
• Joint guidelines with the Lines Ministries
• Analysis and reporting on the progress of the local budget.
• The different drafts for Council of Ministries