Italy grants $2.3 million for municipality reforms

A municipal development fund could be created

The Italian government has agreed to provide the Ministry of Interior and Municipalities with a grant totaling $2.3 million for finance and other reforms.

The Memorandum of Understanding signed by both parties, in December 2011, called for a part of the budget to be dedicated to technical assistance for the MoIM and another part to provide technical expertise to municipalities.

The initiative would address the issue of municipal finances and the improvement of service delivery, at the local level. It will investigate the possibility of putting in place a pool-funding mechanism such as a Municipal Development Fund, which would promote development activities. The MDF would complement the existing Independent Municipal Fund.

In addition, the project would produce a regulatory framework for enhancing municipal revenues and a new formula for allocation of funds to municipalities.