Local Finance and Public Property

In the area of local self-government finance management, SCTM deals with the issues of (1) the adequacy of local self-government revenue for performing original and delegated local self-government tasks, (2) public finance management and good governance at local self-government level, with particular emphasis on improving programme budgeting. It is particularly important for SCTM, as well as for towns and municipalities, (4) transparency of local budgets, i.e. (5) involvement of citizens in deciding on the spending of public funds. Within the framework of public property management, SCTM deals with the issues of (1) registering and the transfer of public property to local self-government, (2) the record and assessment of the value of public property.

SCTM actively cooperates with state bodies and institutions in charge of these areas, primarily with the Ministry of Finance, the Tax Administration, the Public Debt Management Authority, the Republic Property Directorate of the Republic of Serbia and the State Audit Institution.

Legislative framework

The key regulations governing public finance and public property are: Law on the budget system; Law on Local self-government Finance; Law on Public Property; Law on the Budget of the Republic of Serbia; Law on Public Debt; Law on Property Taxes; Law on Tax Procedure and Tax Administration; The law on Public Procurement; Law on the Deadlines for Settlement of Financial Obligations in Commercial Transactions.

How SCTM contributes to the improvement of local finances and public property

In the field of local finance and public property management, SCTM is making efforts to improve the system of local self-government financing, to support the reform of the local public finances management, and to establish and effectively manage public property by local self-government.

We support towns and municipalities in processes related to the efficient functioning of the local budget system, or in processes related to the planning, preparation, delivery and execution of local budgets (in this context, in particular programme budgeting and linking with general planning processes and documents).

SCTM provides assistance to local self-governments in all the challenges related to the management of the original revenues of local self-government (in particular income from property tax), development of capacities for adequate financial management and control, and in addition, we are trying to strengthen the capacities of towns and municipalities in the field of public procurement. Part of our regular activities is the provision of support to towns and municipalities for completing the process of registering public property, determining its value, harmonizing and updating records of real estate in public ownership.

In order to exchange experiences and practical knowledge between towns and municipalities and to monitor the situation and support the definition of the organization's policy in this area, within the SCTM operate Committee on Finance and Public Property and the four SCTM Networks: the Local Finance Network, the Network of Heads of Local Tax Administrations, the Public Procurement Network and the Network for Property and Legal Affairs and Property Management.

The most important priorities of the SCTM in the coming period in this area are:

  1. Reform of the local self-government financing system in the direction of further development of the financial capacities of towns and municipalities;
  2. Improving the legal framework governing the management of public finances and planning at the local level;
  3. Improving local self-government capacity for managing local original revenues, in particular income from property tax and reforming the legal framework in this area;
  4. Strengthening the capacities of local self-governments for financial management and control;
  5. Continuation and continuous strengthening the capacities of local self-government for the implementation of programme and capital budgeting and their alignment with strategic and mid-term planning;
  6. Development of gender-responsive budget at the local level;
  7. Improving the transparency of the local finance system and supporting the strengthening of citizens' participation in budget adoption;
  8. Support in the application of public procurement and concessions regulations, their alignment with applicable EU regulations and the strengthening of administrative capacities at the local level;
  9. Support local authorities in developing their capacities to enforce competition protection regulations;
  10. Further efficient transfer of public ownership to local self-government and reform of the legal framework in this area, while strengthening the function of managing public property as one of the key public policies important for local economic development.