Paper/Speech Details of Conference Program for the 20th NISPAcee Annual Conference Program Overview Public Finance Author(s) Snezana Mojsoska University "St. Kliment Ohridski" Skopje Republic of North Macedonia Dance Nikolovska Vragoteovska, Ministry of Finance, Republic of Macedonia (FYROM) Title Fiscal decentralization: Success or failure in case study Macedonia File Paper files are available only for conference participants, please login first. Presenter Snezana Mojsoska Abstract Fiscal decentralization: success or failure in case study Macedonia Assis. Prof. Snezana Mojsoska MSc. Dance Nikolovska Vrateovska Abstract Starting from the 90 - ies of the last century, Macedonia was engaged in a complex process of transition and that means implementing a number of crucial reforms, including establishment and strengthening of local democratic institutions. In this context, in 1995 lawmakers in the Assembly of Macedonia adopted the Law on Local Government, with which were determined public responsibilities of the units of the local government. Shortly afterwards, was adopted the Law on Territorial Division of the Republic of Macedonia and the laws that regulate public utilities and so the normative aspect of the legal framework for local government was complete. One of the main parts in the decentralization process was fiscal decentralization. In this paper will be explain and analyze the concept and the processes of fiscal decentralization in Republic of Macedonia. The concept of fiscal decentralization involves the establishment of funding mechanism for municipalities that is transparent and based on objective criteria and standards. With the transfer of responsibilities on Municipalities parallel is done and transfer of funds to carry out this responsibility by the Budget of the Republic of Macedonia and the budgets of the units. According ZELS, fiscal decentralization is implemented in two phases, based on several principles. The process of fiscal decentralization is important for the economic benefits of the units of the local government, and for the whole national economy. In this paper are shown empirical and statistical data for progress from the date of starting of the process of fiscal decentralization in Macedonia. General, we can conclude that from the last three years process of decentralization progressed with a very slow pace. However, the progress in 2010 and points of improvement detected in this report provide solid basis for further properly creating and directing the policies of decentralization in function of encouraging and intensified implementation and it is very important to faster the processes of fiscal decentralization. From this study also we can conclude several negative points which make slower the fiscal decentralization as: unqualified human resources, less financially strongest of the unit. At this point upraises several recommendations as: need of regional connection of smaller and less economic powerful municipalities and redistribution of their public services, need of development of strategy for providing conditions in function of balanced regional economic development of smaller municipalities, which are ignored on behalf of developing large municipalities. Key words: local government, fiscal decentralization, process, moving, recommendations.
