Local government system in Estonia: some basic characteristics

Veiko Sepp

Territoriality of local government

Estonia Denmark Finland Norway

Local government units

226 98 336 431

Regional local government units

5 19

Regional local government co-operation units

15 19

Regional state government units

15 ... 5 6 & 15 19

Territorial units in EstoniaLocal municipality units – linn (cities and towns) or vald (rural municipalities)Regional units – maakond (county) and regioon or piirkond (region)

Settlement units:

Linn – city (town)

Alev - borough

Alevik - borough

Küla - village

Imagined territorial units:

Kant and nulk - rural corner

Kihelkond - parish

Division of local government system

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

0 50 100 150 200 250

Population Local Budget (1000 euros) Local Budget per Inhabitant

Division of local government system

34

84

34

15 15

29

6 5 5

0

10

20

30

40

50

60

70

80

90

0…

99

9

10

00

…1

99

9

20

00

…2

99

9

30

00

…3

99

9

40

00

…4

99

9

50

00

…9

99

9

10

00

0…

14

99

9

15

00

0…

19

99

9

20

00

0…

Division of local government system

Tasks of local governmentsObligatory tasks Voluntary tasks

Social servicesYouth workHousing and communal economyWaste managementSpatial planningLocal transportLocal roads and streets

Schools and kindergartensCultural and sport institutionsHealth centres

Entreprenurial support, business development, workplaces

Tourism

Vocational schools

Workplaces per registred inhabitants (15...64)

Local government co-operationCounty unionsNational unions separately for rural and urban municipalities

Joint businesses, non-profit organisations and foundationsJoint officialsCo-operation/co-ordination contractsCommon projects

Local government incomes

personal income tax (PIT)47%

land tax4%other local taxes

2%Income from

economical activities and property

11%

Equalization fond6%

Block grant from State Budget

17%

Earmarked grants for current expenditures

from State Budget2%

Investment grants from State Budget

2%

Transfers from foundations and

NGO-s5%

Sale of property1%

Other revenues3%

Local government expenditure

Government10%

Utility management, transport

22%

Environment services3%

Social care10%

Education43%

Culture12%

Share of local government expenditures in government exp.

28%25%

0%

10%

20%

30%

40%

50%

60%

70%M

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Population trends in local government system

Reform initiativesState building in 1989-1991 – municipalities and counties as local governmentsOne-tier local government system since 1993

1997-2002 – Co-ordinated attempt(s) to reform local government territoriality in Estonia

Since 2003 – voluntary mergers with some financial support