Under article 77 of the National Assembly Rules of Procedure, the Local Self-Government Committee held a sitting on 11 November where the deputies present discussed the problems in the functioning of the 40 least developed municipalities in the Republic of Serbia caused by the reduction in transfer funds.

The sitting was attended by 19 representatives of the least developed municipalities and representatives of the Ministry of Public Administration and Local self-Government and Ministry of Finance.

The prefects of the least developed municipalities repeated their request to have the transfer funds restored to the same level as before the rebalance of this year’s budget, stating that these funds make up 80% of some municipalities’ income and their reduction has caused great problems in the functioning of these communities. According to them, the number of undeveloped municipalities in Serbia has risen to 63 municipalities.

The representative of the Ministry of Finance informed all present that the Ministry had proposed the allocation of 200 million RSD as lump-sum assistance for the 63 undeveloped municipalities in Serbia.

The initiative of the representatives of the most endangered municipalities was endorsed by the deputies present who also pointed out the dire financial situation in these municipalities and the need to restore the budgetary funds, deeming it the only solution for their normal financial functioning. They also pointed out that, apart from the deputies of the Minorities and Democratic Party of Serbia Deputy Groups, the sitting of the Local Self-Government Committee was not attended by the deputies of any other Deputy Group.

At the end of the sitting it was decided to organise an urgent meeting between the representatives of all these municipalities and the Prime Minister and to make the problem of financing undeveloped municipalities the subject of debate at a special National Assembly session.

The sitting was chaired by the Committee Chairman, Jovan Palalic.