FIN MIN: DECENTRALISATION OF STATE AUTHORITY STARTS ON JULY 1

ZAGREB, Jan 11 (Hina) - The process of decentralisation of a large part of services from the state to local level will start as of July 1 this year and it will take place in line with the 'cash principle', including the transfer of rights, obligations and debts, Finance Minister Mato Crkvenac said at a government session on Thursday. According to Crkvenac, decentralisation will also take place in the systems of education, health, social care and, partially, in the culture sector. Decentralisation costs will amount to 1.2 billion kuna annually. Crkvenac addressed this issue within a debate on a bill on changes to the Law on Primary Education which the government confirmed today. Decentralisation means that part of the state revenue will be transferred from the state to local level, he said, stressing the process should be accompanied with efficiency and economising. Transferring obligations from higher to lower levels does not require new employment or new costs, he added. First Deputy Prime Minister Goran Granic reminded that the government would hold a session on decentralisation on January 15, which is also to tackle a package of bills on local self-government and its financing and two election bills. The changes to the Law on Primary Education the government confirmed today envisage decentralisation in the financing of schools. This means that 80 percent of schools' funds would be allocated by the state and 20 percent by local units. The heads of primary schools will no longer be appointed by ministers but by school councils. (hina) rml