site.btaPM, Deputy PM, Deputy Finance Minister Discuss Financial Decentralization with Mayors

"The government supports the financial decentralization of the municipalities after a careful analysis, which is to be done by the Ministry of Finance," said Prime Minister Nikolay Denkov at a meeting with representatives of the National Association of Municipalities in the Republic of Bulgaria (NAORB) on Thursday. Deputy Prime Minister and Minister of Foreign Affairs Mariya Gabriel and Deputy Minister of Finance Georgi Klisurski also took part in the talks.

Denkov stressed that there is political agreement to take real steps towards greater autonomy for local authorities, but it is necessary to find a sustainable approach that will not allow any municipality to be disadvantaged. He added that the decentralization process must develop in parallel with increasing transparency and improving control over the spending of public funds. The possibilities of creating new earmarked funds for municipalities to finance their projects were also a topic of discussion.

In the course of the conversation, the mayors presented a model for financial decentralization supported by all municipalities, which was developed in 2022 based on official data provided by the Ministry of Finance and other state institutions. It explored possible scenarios for all 265 municipalities in the country.

The mayors expressed satisfaction that their proposals had been heard in the preparation of 2023 state budget. They hope for an equally fruitful discussion on the 2024 draft.

Deputy Prime Minister Gabriel said she was ready to help municipalities work more actively with Bulgarian commercial attaches and ambassadors abroad to attract investments more easily.