Serbia Unitary state

Reforms

Many laws adopted since the onset of the crisis have had a direct impact on local governments in Serbia, particularly on a financial level.

There are two laws in preparation and under discussion that might change the present legislation on local governments and on local and regional civil servants. A slight increase in competences led to a rise in the number of local and regional personnel and the internal restructuring of some municipalities. In addition, a law passed in 2009 revised the status of the Autonomous Province of Vojvodina and strengthened its rights and autonomy.

With regard to budget, a law dealing with local and regional authorities’ finances was adopted in 2006 and revised several times over the course of the crisis. Local governments’ own resources have thus tended to reflect a downwards trend. Furthermore, a regulation regarding financial transfers from the state was scheduled for May 2009, but it was delayed until 2011. It has nonetheless altered the calculation of the transfers, resulting in a further decline in local resources.

The drop in local governments’ own resources as well as in state transfers was partly offset by a regulation authorising free price fixing of local public services. In addition, the rate of local governments’ share of social security contributions went from 40 to 80%. Programmes to reduce local administration costs and improve efficiency were also introduced.

Local self-government in Serbia:

While the legislation passed does not seem to pose a threat to local and regional self-government in Serbia politically speaking, the loss of resources can nonetheless create difficult economic situations that can impair local governments’freedom of action.