BANSKA BYSTRICA, October 3, (WEBNOVINY) — Chairmen of four of eight Slovakia’s counties consider the Cabinet-approved proposal from the Finance Ministry’s workroom, changing the model of self-governments‘ funding from centrally collected taxes just a tool to take away money from self-governments and people. According to the passed blueprint, the state budget should transfer to municipalities a share of revenue from a mix of taxes, including the personal income tax, excise taxes and VAT. Currently, they are financed only by a share of revenue from personal income tax. As a result of this change in 2012, municipalities would receive less than they would according to the current formula.
Heads of the counties of Banska Bystrica, Kosice, Zilina and Nitra Vladimir Manka, Zdenko Trebula Juraj Blanar and Milan Belica, respectively said after their meeting on Monday that if the bill goes through parliament, ten years after they emerged in local administration reform, counties would have to fight for their continued existence. According to their joint statement, in 2012 counties would have budgets reduced by EUR 62 million [compared with the expected revenues according to the currently valid formula] . As a result, they would have to increase fees charged in social service homes, school meals, commuting travel fare, leave roads without repair, and increase the local tax on motor vehicles. Moreover, co-financing of projects from European structural funds might be stopped, they warned.
Chairmen of counties demand the withdrawal of the new financing model from the legislative process. After the Cabinet okayed it, the draft is already going to parliament. They require as well a serious expert level dialogue. They complain that no impact study was elaborated before the proposal was drafted, which they deem a non-standard and dangerous procedure within Europe. They opine that the government insufficiently communicates with them and does not take them as partners.
Head of the Nitra County Igor Belica underscored that the model of financing the municipalities and counties with the so-called tax mix is not a problem but the proposed volume of funds, or the sum of the share is problematic. Instead of the proposed less than 13 percent of the whole general government budget, municipalities and counties should receive 25 percent, which is according to him average participation of self-governments on public sources in Europe.
SITA