The Bill amending the Law on Financing Local Self-Governments was elaborated by Minister of Public Administration and Local Self-Government Ana Brnabic who said that the Bill effectively reallocates 4.8 billion RSD of income tax revenue from the local level to the level of the republic, as agreed with the International Monetary Fund. She added that the correction in the allocation of income tax funds is a fiscal consolidation measure aimed at maintaining macroeconomic stability. The Minister announced that by the end of the year the Ministry of Public Administration and Local Self-Government will prepare a new draft law amending and modifying the Law on Financing Local Self-Governments, adding that the Ministry and the Standing Conference of Towns and Municipalities are hard at work on a decentralisation strategy. She also announced that the Ministry of Finance is preparing two draft laws – on fees and on compensations, which would secure sources for local self-government funding.

Following a debate the Committee members proposed that the National Assembly accept the Bill amending the Law on Financing Local Self-Governments, in principle, by majority vote.

The sitting was attended by representatives of the Ministry of Public Administration and Local Self-Government and the Ministry of Finance.

The sitting chaired by Committee Chairman Petar Petrovic and attended by the following Committee members and deputy members: Slavisa Bulatovic, Vladan Zagradjanin, Mihailo Jokic, Djordje Komlenski, Aleksandar Martinovic, Zarko Micin, Natasa Micic, Miletic Mihajlovic, Dusan Pavlovic, Jovan Palalic, Balint Pasztor, Sreto Peric, Vjerica Radeta, Marko Parezanovic and Aleksandra Majkic.