Friday, July 1, 2011

An evolving market


Funding for local government based on a system combining taxation, depreciation and debt financing. For several years, local communities are the focus of many reforms that change their legal and financial environment.

The laws in 1982-1983, a second wave of reforms is by expanding the decentralization, strengthening the financial burden of local governments. Launched by the constitutional revision of 2003, Act II of decentralization establishes the organization of a "unitary republic, decentralized," establishes the principle of financial autonomy of communities and provides an important transfer of skills and resources from the state to local communities.

Following the 1982 reforms, the budgetary and accounting rules for local authorities has also been updated. This update stimulates the development of a financial policy while planning for the impact on the budget:

* Financial Provisions of the Law on Territorial Administration of the Republic (ATR) which require, with the objective of financial transparency, to publish an appendix to their accounts consolidated government;

* Renovation of the accounting framework that enables accounting harmonization of budget instructions to the General Accounting Plan (PCG);

* Less regulation of loans to encourage diversification of financial instruments;

* Relaxation of the principle of the obligation to deposit in the Treasury and expansion of investment opportunities.