Local finance: transfer of resources, advisory and assistance service
The ministry, through the Directorate for Local Finance, is responsible for financing local authorities by the State budget resources annually allocated to them for their running, including financing, payment of expenses and presentation of a final statement.
Furthermore, the Ministry of Interior is entrusted with the following tasks: drafting public finance rules and regulation, carrying out research into the economic and financial aspects of local self-government authorities and assessing the performance of local public services.
Research activities are carried out by the Directorate for Local Finance in collaboration with the Observatory for Finance and Accounting of Local Authorities.
Assistance to local authorities in financial difficulties
The directorate also provides assistance both in complying with the provisions set forth in the domestic stability pact and in restoring the financial health of local authorities having declared financial difficulties. This service is provided when debts incurred cannot be paid by using local authorities’ resources and when fundamental functions and services cannot be no longer assured. Measures identified for developing a plan to restore local authorities’ financial health must be approved by the ministry which authorises the transfer of state budget resources by issuing a specific order.
Advisory activity and data collection
These activities include providing advice on financial and accounting regulation, on decentralization and implementation of budget laws, on gathering, processing and circulation of local authority budget information.
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