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. 2 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 3 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. 4 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 5 “...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. 6 7 “...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. 8 9 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%. 10 11 12 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. 13 14 15 Revenue Raise from Municipal Property Use (MP) • • • • • 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 16 17 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. 18 “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. 19 THANK YOU! 20