Challenges identified
- Significant differences in financial capacity between urban and rural municipalities.
- Low financial autonomy to cover basic expenses.
- Lack of a clear and equitable mechanism to redistribute resources according to needs and socio-economic disparities.
Solution provided
- Development of a statistical model for the distribution of resources based on objective indicators (population, poverty, level of local development, fiscal effort).
- Definition of a new architecture of financial transfers, integrating equalization, compensation and support funds for fragile municipalities.
- Technical support to adapt the equalization system to the requirements of the law on decentralization and the principles of territorial solidarity.
- Training of municipal stakeholders and relevant administrations to ensure understanding and implementation of the new model.
- Monitoring and adjustments to improve the efficiency and transparency of the redistribution mechanism.
Partners involved
- Ministry of Local Affairs and the Environment.
- Public finance advisors and territorial equalization experts.
- International programmes to support local governance.
Implementation period
This project has laid the foundations for a fairer and more sustainable system of inter-municipal financial solidarity, in the service of equity and balanced development between Tunisian territories.
