This provision is planned to be included in the draft Regulation on the Assumption of Long-Term Obligations, which will soon be submitted to the government.
“Multi-year commitments” refer to the total amount of future payment obligations for the procurement of goods, works, and services with a duration exceeding one year, within the limits of the expenditures projected for these purposes in the relevant years.
As noted in the explanatory memorandum to the draft, the current regulatory framework does not provide for the possibility of first-level local governments entering into multi-year commitments for the development of general urban development plans.
This limits their ability to effectively enter into contracts and provide services for the development of master plans. Although this is a complex process that involves work spanning at least two fiscal years and entails financial obligations extending beyond a single fiscal year.
In addition, the draft bill establishes an obligation for local authorities to develop and approve internal procedures regarding the preparation, recording, and storage of reports on multi-year financial obligations to local councils.
This measure will help strengthen financial discipline and ensure greater predictability and sustainability of local budgets in the medium term.
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