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GOVERNMENT PREPARING DECENTRALISATION LAWS

ZAGREB, June 15 (Hina) - The process of decentralisation, namely the transfer of some powers and funds from the state to the local level, can start on July 1, Deputy Finance Minister Damir Kustrak said on Friday. The process can start then as local units will be able to collect one third of the funds at once, Kustrak told a government session which today formulated the final version of the decentralisation model. Local units must revise this year's budgets by the end of September, Kustrak said. A five-bill package the government today forwarded into parliamentary procedure refers to decentralisation in education, health, and welfare. Speaking about the new aspects of local self-government unit financing, Kustrak estimated counties would accumulate 136 million kuna (approx. $15.8 million) more than last year, for instance through taxes on inheritance, road vehicles, and boats. Another new aspect is the possibility of municipal
ZAGREB, June 15 (Hina) - The process of decentralisation, namely the transfer of some powers and funds from the state to the local level, can start on July 1, Deputy Finance Minister Damir Kustrak said on Friday. The process can start then as local units will be able to collect one third of the funds at once, Kustrak told a government session which today formulated the final version of the decentralisation model. Local units must revise this year's budgets by the end of September, Kustrak said. A five-bill package the government today forwarded into parliamentary procedure refers to decentralisation in education, health, and welfare. Speaking about the new aspects of local self-government unit financing, Kustrak estimated counties would accumulate 136 million kuna (approx. $15.8 million) more than last year, for instance through taxes on inheritance, road vehicles, and boats. Another new aspect is the possibility of municipalities and towns introducing surtax on income tax, and three new types of tax - on undeveloped farmland, unused building sites, and unused business property. The principal changes in joint state and local unit taxes refer to shares in income tax. (hina) ha sb

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