Transcript Document

WB Pilot Project
“Transparency and Accountability of the Local Budgets”
2004-2006
Strengthening Revenue Capacity of
the LSGB and Transparency on
Managing Local Revenues in the
Kyrgyz Republic
Asylbek Chekirov
Moscow
June 19, 2006
Brief Information on Decentralization in
Kyrgyzstan...
1. D. process: complicated, irregular, long. Administrative and political
decentralization has been conducted; legislative framework for fiscal
decentralization has been prepared. BUT: the real mechanisms of local
budget independence have not been developed.
2. The main challenges of FD at the current stage:
 Essential differentiation in delineating responsibilities
 Problem of evaluating revenue capacity of municipal facilities
 Low level of vocational training of LSGB
3. Who are LSGB?
 497 municipal facilities: 25 cities and 472 aiyl okmotu (АО);
 LSGB = selskaya uprava (АО) + aiyl kenesh (АК or local parliament) +
public unions
 2004 – first elections of АК; 2005 – election of АО heads (80% new heads)
 The main challenges: LSGB’s ignorance of their rights, duties and
responsibilities; lack of population’s trust; passivity, lack of real mechanisms of
stimulating economic growth on the sites and solving social problems.
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Why was a pilot project needed?
Pilot objectives:
 Testing innovative
approaches in raising
vocational training of
LSGB on managing
fiscal resources.
 Development of
mechanisms of the
citizens’ participation in
decision-making on
budget process.
“Bermudan triangle”
Aiyl
Okmot
u
Aiyl
Kenes
h
Reside
nts and
activist
s of
HGO
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Peculiarities of the Pilot Project
Two main
components:
 6 training programs
on raising the LSGB
capacity have been
conducted (173
trainings), more than
1000 people have been
trained;
 Strengthening the
citizens’ participation
in budget process
and transparency in
decision-making at
the local level - > 50
public hearings and
>2500 participants.
Coverage:
In 2 oblasts - 31 АО in the south and
north; target group – АО heads
and specialists, АК deputies,
leaders and activists, NGO.
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Raise of Revenue Capacity at the Local Level :
Potentials and Alternatives
Project flexibility: partial implementation of
the program on formulating and performing
local budgets
Seeking additional potentials => emphasis
on economic potential on the sites and
analysis of limiting factors
Mini-model of decentralization?
Two innovative programs (end of 2005-beginning of 2006):
Management of the lands of the Land Redistribution
Fund (LRF)
Fiscal aspects of managing municipal property
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“...Land – to the farmers?”
LRF = lands, which are the property of the
government and transferred to local governance
bodies for management for the decision of the issues
on social economic development of the villages.
Problems:
Low level of revenues and collection of payments from the
LRF land lease => up to 90% in the structure of non-tax
receipts of budget, important resource in budget
replenishment, high value.
Corruption, the most number of violating procedures, full lack
or violation during competition on distribution + no motivation
to inform population on land use, the most number of disputes.
Low level of deputies’ participation, ignorance of their own
rights, legal illiteracy.
Inefficient use and drop of yield on the LRF land.
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“...Land – to the farmers!”
Mechanisms of raising revenues from the LRF land management:
Conduction of informational training programs among the
citizens, aiyl kenesh deputies, and aiyl okmotu specialists
on the LRF land management.
Stimulating of aiyl kenesh activity – adoption of the standard
provisions on the procedures of the LRF land lease.
Land redistribution – conduction of new competitions,
revision of earlier adopted decisions, renewal of tender
committees.
Setting up of land market price, development of
agreements.
Organizing activity of a committee on monitoring of the LRF
land use on a regular basis.
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Examples from Lessons:
Training program + public hearings on budget
Example 1. Barpy village, Suzak rayon, Jalal-Abad oblast.
At the public hearings the deputies raised the issue on
the closeness of information on the LRF land use => A
deputy committee on revision of the LRF land use has
been established => 218 ha of inefficiently used land
have been found => Tender was conducted on the
lands, which were previously leased at a low fixed
price. A rate of lease payment raised by 50%. 147,000
soms have been additionally received to local budget
(~$3,500), which were used for rehabilitation of
channels and social programs. Totally the budget was
raised by 17%.
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Examples from lessons...
Example 2. Atabekov village, Suzak rayon, Jalal-Abad
oblast.
1. A training program on the rights of aiyl kenesh
deputies has been implemented including their
rights to land distribution.
2. After training the tender committees of aiyl
kenesh deputies on revision of the aiyl okmotu
decisions on land were established.
3. The lands distributed violating the laws were
withdrawn; at the present time competition is
being prepared on these lands.
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Revenue Raise from Municipal Property
Use (MP)
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•
•
•
•
It is one of the main sources of non tax
proceeds (lease, sale). BUT: revenues < 5%
Low level of knowledge and lack of MP
management skills
The right of property to MP facilities has not
been set up
No transparency
Revenues from municipal services are
small
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The First Steps on Improving
Management of MP
Training program on “Fiscal Aspects of
Municipal Property Management” was
prepared and conducted.
Standard registers on recording municipal
property facilities were transferred to pilot aiyl
okmotu.
The local kenesh are recommended to adopt a
provision on the main principles of municipal
property management, which provides
transparency in municipal property use.
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“A lot of Plans…”
Coverage all the republic with training on the
basis of pilot programs: special attention –
strengthening revenue capacity, population’s
participation and strengthening accountability
of the LSGB.
Allocation of small grant for the LSGB capacity
building on managing land resources and
municipal property and acquisition of
supportive legal services as well.
Building a dialogue with the regional and
republican authorities.
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THANK YOU!
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