The financial autonomy of municipalities is increasing slightly in 2025
The erosion of municipal financial autonomy in the country is a long-standing and persistent process. While the share of own-source revenue within total municipal budget receipts stood at approximately 42% in 2015, it is 25.3% in 2025. The downward trend is persistent, despite occasional years of slight increases—such as 2025. The reason is well known: municipal expenditures are rising much faster than revenues, which are tied to relatively static tax bases like property valuations or vehicle engine power. Nevertheless, 2025 does appear to mark a departure from this trend, given that expenditures are growing by 10.9% year-on-year, while revenues are rising by 17.3%. In previous years, expenditure growth was much more rapid—with the exception of 2021, when both revenues and expenditures increased by just under 20%.