Fiscal Decentralization Reform Initiatives Overall policy Constitutional Central Govt Local Govt Participation stance and policy and Legal Institutional and institutional and by Civil effectiveness Framework Regulatory regulatory Society and Framework framework Private Sector Structure and role of public sector Functional and Puntland constitution Puntland Law No 7 provides put down the vision of Constitution of framework of revenue expenditure decentralization and its puntland clearly and expenditure assignments functions defines the role of assignments. administration in regional and district level Assignment of Law No 7 mandated According puntland According to the Law No 7 does not that the districts to constitution and Law Puntland Constitution make clear distinction Revenue collect broad spectrum No 7 promotes the indicated that CG and between fees for Sources of tax and non tax districts to become LG have different role providing social and revenue source in self sufficient of taxes economic services and addition to that district taxes mechanisms for revenue consist many settlement and sources include ( regulation of rates and charges, fines, property control of these. tax. Puntland constitution Law No 7 gives the Law No 7 mandated The administration of put dawn vision and framework for that the districts to public services defined Fiscal mission for revenue and collect broad spectrum in the constitution of Transfers decentralization, which expenditure of tax and non tax puntland roles and should make it possible assignment between revenue sources responsibilities of for the region and central and local districts and regions in districts to become governments terms of administrative in their power. provision of services. Local Govt Article 35 of Law No. No institutional or 7 provides for local regulatory framework Borrowing and and international in place, loans by local Infrastructure loans if approved for governments are Development the local governments approved by Ministry of Finance for loans from central bank for infrastructure projects SWOT Analysis of Fiscal Decentralization Strengths Weaknesses - Constitution and Legal Framework in Law 7 for -There is no overall decentralization policy decentralization system -Limited financial resources at central level with -Existence of service delivery within districts customs as main source of revenue - function of local councils defined in Law 7 -No developed transfer system to all districts - High priority and support through V.P and -Lack of qualified staff in the districts Interministerial Committee on Local Government -Limited financial resource and revenue (IMCLG) collection in the districts - Piloting of Decentralization in 3 Districts by -Inconsistent local government legislation JPLG provides basis for fiscal decentralization concerning function and powers
Fiscal Decentralization Reform Initiatives Overall policy stance and policy effectiveness Constitutional and Legal Framework Central Govt Institutional and Regulatory Framework Local Govt institutional and regulatory framework Participation by Civil Society and Private Sector Structure and role of public sector Functional and expenditure assignments Puntland constitution put down the vision of decentralization and its functions Puntland Constitution of puntland clearly defines the role of administration in regional and district level Law No 7 provides framework of revenue and expenditure assignments. Assignment of Revenue Sources Law No 7 mandated that the districts to collect broad spectrum of tax and non tax revenue source in addition to that district revenue consist many sources include ( charges, fines, property tax. According puntland constitution and Law No 7 promotes the districts to become self sufficient According to the Puntland Constitution indicated that CG and LG have different role of taxes Law No 7 does not make clear distinction between fees for providing social and economic services and taxes mechanisms for settlement and regulation of rates and control of these. Fiscal Transfers Puntland constitution put dawn vision and mission for decentralization, which should make it possible for the region and districts to become in their provision of services. Law No 7 gives the framework for revenue and expenditure assignment between central and local governments Law No 7 mandated that the districts to collect broad spectrum of tax and non tax revenue sources The administration of public services defined in the constitution of puntland roles and responsibilities of districts and regions in terms of administrative power. Local Govt Borrowing and Infrastructure Development Article 35 of Law No. 7 provides for local and international loans if approved for the local governments No institutional or regulatory framework in place, loans by local governments are approved by Ministry of Finance for loans from central bank for infrastructure projects SWOT Analysis of Fiscal Decentralization Strengths Weaknesses - Constitution and Legal Framework in Law 7 for decentralization system -Existence of service delivery within districts - function of local councils defined in Law 7 - High priority and support through V.P and Interministerial Committee on Local Government (IMCLG) - Piloting of Decentralization in 3 Districts by JPLG provides basis for fiscal decentralization -There is no overall decentralization policy -Limited financial resources at central level with customs as main source of revenue -No developed transfer system to all districts -Lack of qualified staff in the districts -Limited financial resource and revenue collection in the districts -Inconsistent local government legislation concerning function and powers
Puntland_Decentralization_Policy_-_final_version_14_Nov_2013.docx