Local Government Financing Directorate

Director of the Directorate
Nadezhda Genova

Contact details:
102 “G. S. Rakovski” Str.
1040 Sofia, Bulgaria
telephone: (+359) 2/9859 2550

e-mail: Embedded Image

The main task of the Directorate is to assist the Minister of Finance in preparing and implementing the state budget in its part referring to municipalities as well as in their financing with funds from the central budget.

The Directorate interacts with the 265 municipalities on the territory of the Republic of Bulgaria, the sectoral Ministries, the National Association in the Republic of Bulgaria and non-governmental organizations.

 

Functional structure:

The Local Government Financing Directorate comprises 20 employees organized in two divisions:

  • State Mandated Activities Division;
  • Consolidated Budget Forecasts and Relations between Municipalities and the Central Budget Division

Within these divisions the Directorate implements its main functional priorities laid down in the Structural Regulations of the Ministry of Finance.

 

Municipal budget forecasts

The Directorate elaborates the medium-term budget framework and the draft State Budget of the Republic of Bulgaria Act in their part referring to municipalities and forecasts and analyses the proceeds from municipal tax and non-tax revenues. It takes part in the development of mechanisms to determine the amount of the general subsidy for state mandated activities, the equalizing subsidy and the target subsidy for capital expenditures from the central budget to the municipalities. The Local Government Financing Directorate elaborates methodological guidelines for the preparation of municipal budgets. It analyses and exercises control over the indicators under the initial municipal budgets as well as under the annual report on their cash performance.

Performance of municipal budgets and local government financing

The Local Government Financing Directorate prepares an initial and maintains an updated, defined more precisely annual plan of the relations between the central budget and the municipalities' budgets and sets limits on municipalities' subsidies and other transfers in accordance with the legal provisions. It prepares and proposes the required adjustments to the budget relations between municipalities and the central budget. It monitors and analyses the on-going performance of municipalities' budgets and accounts for EU funds.

 

Central Municipal Debt Register

In accordance with the provisions of the Municipal Debt Act the Directorate maintains a Central Municipal Debt Register. The Register ensures publicity of information and complies with the requirements on transparency in public funds utilization.