Revenues to the state budget by local government for 2014 reached the amount of 12.447 ml ALL, approximately as the predicted amount by the government. Fiscal indicators issued by Ministry of Finances show that expenditures by local government units reached the amount of 32.892 ml ALL in 2014, a slight increase compared to expenditures in 2013.
Taxes of local government (taxes on wealth, taxes on small size business and local taxes), are deposited to the state budget. Tax on wealth collected in annual terms about 3.678 ml ALL, 1.709 from the simplified on businesses and 7.060 ml ALL from local taxes.
Starting from 2015, the government has decided that local taxes will be collected by tax administration and they will return to municipalities, in order to avoid abuses by local government tax collectors. In the past, local government has faced many difficulties and in some cases even bankruptcy due to bad management of local budget which is mainly comprised by local taxes and government funds.
News source: ATA
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