Fiscal autonomy and transparency of public authority

by Eduart GJOKUTAJ

The basic reason for the creation of autonomous fiscal authority of public revenue is closely related to the increase of productivity by removing barriers to effective management, but being subject to public accountability and transparency. On the one hand, autonomy expresses the extent to which public revenue administration would be able to work independently of the actual dependency (and organization independent from the government budget). On the other hand, a redefinition of the role and responsibilities of the individual and organizational levels, and a structure that is defined by responsibility, authority for decision-making and transparency will be the gateway to the decision by the central government under the government program and fiscal management strategies.

For every idea or proposal put to discussion the need to mention strengths and weaknesses. On the case of the idea in question, the main reasons are based on arguments that Central Fiscal Administration:

is known and is facing problems of its administration. This fact is already part of the conclusions reached in which the IMF experts and executives of tax administration;

has entered into a process of modernization. This process, in consultation with IMF experts began with the adoption of strategies, tools and tactics to achieve strategic objectives;

has dared to acknowledge and confront its risks. This administration has already identified key risks and determines the means to achieve their solution;

aims to meet a new management model by changing the old model. In a joint conclusion with foreign assistance is determined to apply the model of risk management according to voluntary compliance with law by taxpayers. This is a

groundbreaking model for all European Union countries, and more so for the Balkan region; aims through the development of new model also increase its administrative capacity.

But, coupled with the vision and operational programs to go to the fulfillment of his objectives associates some weak points that are the reason for writing this article. The most controversial is precisely the current autonomy of the central fiscal administration. Currently, for the managers of administration remains a weak point the policy about the capacity and human resource allocations as needed to implement the new model. While the government sets the current resources under a centralized scheme, but it is not welladjusted to the needs of the new management model will proceed to bring consequences associated with their distribution according to needs, but also with their treatment based on the achievements. If, at this point we include the possible merger of the central and local fiscal administrations in the near future (larger staff), then there is much need for a more independent authority in engineering of the reformed administration, not to make the mistakes of overlapping tasks, reducing incentives for job creation and social problems by removing 'unnecessary' by the implementation of new structural scheme. Another side needed to be addressed is the level of payment of this administration. One of the best qualities of several tax administrations is that fiscal staff salaries are higher than most other employees of public administration and one of the best places to work. Another weak point, noted by the past experience is the problem of relations and communication between superior-subordinate institutions, or interdepartmental ones. This culture is weak, non-standardized and problematic. A non-autonomous fiscal administration and seeing the former experience is dependent on edge thread ready to be broken whenever there is a willingness cooperation or coordination of actions. Troubles are only of the government and of the taxpayer that suffers the burden.

In this framework of the current administration, but seeing in the vision eye of the future need to be discussed, and further proved the most effective model taking into account the fiscal administration is not a universal remedy for all the 'pain' of government. Following

of the more effective model it is an investment that has initial cost, but provides longterm effects on fiscal governance. The model, which now intends to extend into the administration, is carefully selected considering the most appropriate strategy and modern in the country. Regardless, the idea of autonomy can find contradictions, remains to be remembered that the management model does not lead automatically to improve effectiveness and increase voluntarism to taxpayers. This happens if linked with a plan to reform its capacity and to build a proactive communication strategy that starts by Parliament, government, taxpayers and extends to internal experts and external.

What we need is strong political support for the institution. Once political support to prove, that has created a structure with integrity should begin to promote the values of the administration, as an asset of the government and the country's European future. After that phase, the fiscal administration could be transformed into a successful management platform from where the government will start to launch the better projects.