GOLD Report I - UCLG

107Table 3Local Finance Indicators (Various Years)Country Total public Local public Ratio of local on Tax shares and Local taxexpenditure expenditure general public budgetary transfers as revenues(% GDP) (% GDP) expenditures % of the total income as % of total incomeArmenia (2003) 20.6% 1.3% N/A N/A N/AAzerbaijan (2003) 17.8% 0.2% 27.5% (1999) Subsidies: 10.4% 22.6%Belarus (2004) 48% 19.3 % 40.1 % Basic level budget transfers: 45.6% Local taxes and payments: 2,1%Georgia 13.9% (2003) 4.6% (2005) N/A N/A N/AKazakhstan (2004) 22.1% 10.8% 48% Transfers: 37.1% Local gvt bodies may not establish taxesKyrgyz Rep. (2005) 28.7% 3.4% 12% N/A N/AMoldova (2003) 25% 7.2% 29% N/A N/ARussia (2005) 18% 5.3 % 18% Transfers to local budgets: 52.5% 4.29 %Ukraine (2005) 45.2% 11% N/A N/A 2.4 %Uzbekistan (2005) 32.5% 23% 55% Subsidies covering budget deficits: 16.2% N/A(estimations)Sources: Domestic sources, UNDP, World Bank as compiled by authors; data on Tajikistan and Turkmenistan are insufficient or not available. It couldnot be verified whether all data are calculated on the same basis, in particular due to extra-budgetary funds.The study of the dynamics of the correlationof expenditures of local budgets toGDP shows a downward trend. Thus, in theRussian Federation the share of GDP allocatedto local budget expenditures was6.5% in 2003, 6.2% in 2004, and 5.3% in2005.On January 1, 2006, the share of local expendituresin the general volume of publicservices consumed 18% of the consolidatedbudget of the Russian Federation, and40% of the consolidated budgets of memberstates of the Russian Federation.In other countries, too, transfers are animportant part of local budgets. For instance,in Belarus the share of transfers in thegeneral volume of revenues reaches 58%,depending on the kind of territorial unitsand the relationships between state localgovernment and local self-government. InUzbekistan, where law proclaims the principleof balanced local budgets, grants areused to cover deficits. In Kazakhstan, theshare of grants is high and has a tendencyto grow: in 2004 by 19.81%, in 2005 by25.28% and in 2006 by 37.1%. A similartendency can be observed in several countries,such as Ukraine and Georgia. Thisreflects the low buoyancy of tax sharescompared to expenditure needs that aregrowing faster.Financial provisions for certain state functionsdelegated to local self-governmentare made with the help of subventionstransferred to local budgets from federal orregional budgets. Bodies of local selfgovernmentare responsible for the use ofmaterial and financial resources receivedby them for the execution of certain statepowers.Aggregate data on the local finances of thestates of Eurasia is provided in Table 3. Butsuch data have to be used with care. Due tothe unstable economic situation of many of