Irakli Kobakhidze: we shall approximate to the European minimum of fiscal decentralization

09 Feb 2018
Irakli Kobakhidze: we shall approximate to the European minimum of fiscal decentralization

Decentralization shall become one of the key priorities of our reforming”, - the Speaker stated when speaking about Municipal reform. The fiscal decentralization index is quite low, he stated.

We speak about fiscal decentralization and the radical changes in this regards. Today, we have quite a low fiscal decentralization index and we want to approximate to the European minimum constituting about 7% of GDP, which means that we shall increase our incomes to 7% of GDP in mid-term run, which will entail radical changes. The way of achievement of this index depends on the strategy. It may be achieved at the account of the income tax or other taxes, also through equalization at the account of the transfer but these are details. It is important that we shall approximate to the European minimum of fiscal decentralization”.