Govt planning additional rise in funding for municipalities


After the April increase of the sum from EUR 589 to EUR 624 for this year, local government can expect EUR 628 next year.

Both increases were envisaged in the coalition agreement, with the April rise resulting in EUR 73 million more in state funding for municipalities this year.

The announcement was made after a meeting of a Public Administration Ministry taskforce, which also discussed a government bill that is reducing the financial burden on municipalities.

Following the meeting, Public Administration Minister Boštjan Koritnik said that the bill is to be discussed in parliament in first reading in October, and expressed belief that the bill would be passed before the end of the year.

Among other things, the bill transfers health insurance duties for the unemployed from municipalities to the state, and is to reduce the expenses of municipalities by a total of EUR 31 million annually. It also envisages EUR 4.7 million in additional funds to municipalities with Roma communities.

Commenting on the per capita funding, Robert Smrdelj, the head of the Association of Municipalities (ZOS), said after the meeting that the association expected the figure to be somewhat higher, but believes that the solution was nonetheless a good compromise.

Echoing Smrdelj, Peter Misja, the president of the Association of Municipalities and Towns (SOS), said his association would support the proposal if the government also increases investment funding, which was also discussed at the meeting today.