Local Governments Under Financial Strain Caused by COVID-19

On April 23, 2020, the participants of the regular UCLG online webinar discussed the reduction of investment flows, access to finance, as well as the role of the World Bank, UN and European Commission in solving financial difficulties of local and regional governments during the coronavirus pandemic.

‘Cities will need to review their budget and, probably, the local tax legislation,’ David Jackson, Director for Local Development Finance of the United Nations Capital Development Fund started his speech. According to the expert, municipalities should consider the opportunity to impose taxes on those spheres that today are generating the highest income, i.e. digital services and online procurements.

Among the representatives of UCLG-Eurasia that took part in this webinar were Secretary General Rasikh Sagitov, Director of the Center for Fiscal Policy Galina Kurlyandskaya, Head of the Department of External Economic Relations of the Ufa Administration Anzhelika Zhelnova, Head of the Department of International and Intermunicipal Relations of the Kazan Municipality Ruslan Galiakhmetov, Deputy Head of the Department of Finance of the Yakutsk Administration Vasily Arzhakov, etc.

As Secretary General of UCLG Emilia Saiz noted: ‘Local governments are most involved in addressing the issues caused by the pandemic. It is necessary to review the system of city financing and learn lessons from the situation occured’.

23.04.2020

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