Session

Management, Business and Economics

Description

Decentralized systems give priority to the role of citizens in the government decision-making process, which through various forms, provide better services. This phenomenon motivates policies in the social system, in order to promote democracy, transparency and accountability. With the signing and ratification of the European Charter of Local Self-Government, as well as the signing of the Ohrid Framework Agreement in 2001, the Republic of Northern Macedonia is obliged to amend the Constitution and in accordance with the Constitution to form a legal framework for the decentralization system, which will allow different roles and responsibilities at all levels of government. For the distribution of value added tax revenues, there are criteria set out in the Regulation on the methodology for the distribution of value added tax. The model of public revenue decentralization faces large fiscal disparities or “inequalities”. One of the 'inequalities' is the distribution of value added tax in urban, rural and in the municipalities of Skopje and the city of Skopje. This paper will analyze the progress of the fiscal decentralization process in the Republic of Northern Macedonia, the problems encountered and what are expected to be the most important impacts of territorial administrative reform in the process of fiscal decentralization. Based on what we pointed out above, we hope that this scientific paper will make a significant and useful contribution to other countries in the region as an efficient model of the financial system of local self-government units.

Keywords:

Fiscal decentralization, Local self-governance units, Public finance, Public revenues, VAT, The legal framework

Session Chair

Bashkim Nurboja

Session Co-Chair

Florin Aliu

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

First Page

30

Last Page

40

Location

Lipjan, Kosovo

Start Date

31-10-2020 3:15 PM

End Date

31-10-2020 4:45 PM

DOI

10.33107/ubt-ic.2020.305

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Oct 31st, 3:15 PM Oct 31st, 4:45 PM

Fiscal Decentralization and the Impact of Disbursing Value Added Tax Income to Local Self- Government Units in the Republic of North Macedonia

Lipjan, Kosovo

Decentralized systems give priority to the role of citizens in the government decision-making process, which through various forms, provide better services. This phenomenon motivates policies in the social system, in order to promote democracy, transparency and accountability. With the signing and ratification of the European Charter of Local Self-Government, as well as the signing of the Ohrid Framework Agreement in 2001, the Republic of Northern Macedonia is obliged to amend the Constitution and in accordance with the Constitution to form a legal framework for the decentralization system, which will allow different roles and responsibilities at all levels of government. For the distribution of value added tax revenues, there are criteria set out in the Regulation on the methodology for the distribution of value added tax. The model of public revenue decentralization faces large fiscal disparities or “inequalities”. One of the 'inequalities' is the distribution of value added tax in urban, rural and in the municipalities of Skopje and the city of Skopje. This paper will analyze the progress of the fiscal decentralization process in the Republic of Northern Macedonia, the problems encountered and what are expected to be the most important impacts of territorial administrative reform in the process of fiscal decentralization. Based on what we pointed out above, we hope that this scientific paper will make a significant and useful contribution to other countries in the region as an efficient model of the financial system of local self-government units.