Supporting financial transparency at the local level (TN0060)

Description of the commitment: Article 127 of Chapter Four of the Local Authorities Code on the local authorities financial system stipulates that: “The state is committed to establishing a national online network on the sound management of the resources and properties of all local authorities to keep the inventory of real estate property and activities updated. This aims to ensure the collection of taxes, fees, charges and local contributions and to follow up on the development of expenditures and resources with a view to putting this data at the disposal of the High Local Finance Authority to facilitate the implementation of its mandate and the development of public policies. Local authorities commit to endorsing and using the aforementioned networks”. Article 61 of the same Code stipulates that: “A higher local finance authority shall be established, under the supervision of the Supreme Council of Local Authorities, to consider all issues related to local finance, support, modernize and dispose of them in accordance with the rules of good governance and in a manner that would support the financial independence of local communities and reduce disparities between them.... " In this context, work will be carried out based on this commitment to upgrade and digitize the system for the realization of local municipal revenues by developing a digital platform bringing together the Authority, the local authorities and the central authority. The platform will include data and indicators related to local finance as well as economic and social statistical data to be agreed upon with the stakeholders. A participatory approach will also be adopted throughout the implementation of this commitment. This participatory approach will be embodied in the organization of a number of workshops, seminars and meetings with various intervening parties such as municipalities, the Ministry of Local Affairs and the Environment, Federation of Tunisian Municipalities and a number of associations active in the field.

Problem/Background: Issues in the management of local finances: - The failure to enact the government regulatory orders for the Local Authorities Code, which represents a legal issue with implications on the operation of local authorities, particularly with respect to local finances - Many practical challenges posed by the legal framework regulating the management of the property of the local authorities, notably the proliferation and fragmentation of legislations, thus leading to problems in collecting local municipal revenues. - The failure of the National Council on Public Accounting Standards to complete the publication of the standards for public authorities accounting, in accordance with Article 191 of the Local Authorities Code on the local authorities accounting system - Inadequate human resources at the level of local authorities, especially the municipalities and municipal tax offices in charge of the quantitative and qualitative management of municipal finances. The lack of modern management mechanisms and tools, which impacts the collection of local revenues. - Rampant indebtedness of most Tunisian municipalities.

Identification of commitment objectives/expected results: - Develop local municipal finances, - Foster a sounder, more effective and transparent management of local financial revenues, - Encourage the necessary reforms. - Enhance the municipality’s role in achieving economic, social and cultural development since it is the local authority closest to the citizen,

How will the commitment contribute to solve the public problem: - Enhance the available municipal financial capacities for better municipal services, - Identify the needs of the municipalities in line with the needs of the citizens, taking into account the characteristics of the municipality and its comparative advantages. - Identify the untapped, new or developable resources, and making proposals thereto.

Relevance with OGP values: - Transparency and accountability: empower citizens and CSOs to follow up on the performance of local authorities and holding them to account with respect to local public finances.

Source of funding /Relation with other programs and policies:

Stages and implementation timeline: Creation of a multilateral working group to follow up the implementation of the commitment under the supervision of the Commission August 2021; Determining the functional and technical needs of the platform December 2021; Choosing the study office that will develop the platform March 2022; Platform design and development. January 2023; Experience and approval of the platform by the team March 2023; Conducting sensitization sessions to introduce the platform and formative sessions for the parties involved in grafting the exploitation of the platform May 2023; Put the platform on the line and graft it with the connected data June 2023

Action Plan Review

12. Supporting financial transparency at the local level