The aim of the project is, based on the economic analysis and international experience, to develop recommendations for the Georgian Ministry of Finance for determining effective mechanisms for distributing income tax between state and municipal budgets.
Aims of the project:
• Economic and statistical analysis of each self-governing unit;
• Analysis of fiscal dependency ratio of the self-governing units;
• Analysis of possible potential for fiscal independence;
• Determining the quantity of hired employees and tax payers;
• Study of the existing legislative framework – The Tax Code, the Budget Code, the Law on Local Taxes;
• Simulation of financial-economic results in case of introduction of the partial tax.
• Study of the international practices of local government funding.
• Developing recommendations for the Ministry of Finance.
Project Deliverables:
Final Report
