Infographic: Corruption Risks in Central-Local Government Fiscal Relations

infographic 2 1The third SEE Good Governance Report warns that local companies, especially SOEs, benefit from non-competitive municipal budget funding. At the same time, citizens and CSOs in SEE are rarely involved in local government finance decision-making. There is a significant abuse of discretion in transfers for partisan purposes, while integrity provisions at the municipal level are often vague and target low-level civil servants. In addition, public procurement is highly susceptible to corruption in SEE due to the large amounts involved. Political alignment with the central government leads to larger procurement contracts at the local level in most studied countries.

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