Support for Communes: the FDL restarting with what is left available

Help yourself and financial backers will help you. The HAT decided to begin to distribute the Local Development Fund or FDL to Communes without waiting for the return of the foreign financings. This resumption is merely symbolic since the available funds barely reach about 7 billions of ariary. This envelope does not entirely stem from the State. The Swiss Cooperation granted green light to the use of some 300 000 Swiss francs in this support program for Communes. With such limited means, the priority is not for infrastructure based public investments but for “small projects directly influencing the population’s daily life”. 

“The available FDL will be more significant when the return of foreign financial backers will come into effect”, hoped the general manager. Some 700 Communes have already been offered 9 millions of ariary for small development projects. Hanitra Raharizatovo, explained that the concerned Communes complied with public support’s standards: the posession of a basic budget and a public accountant. “When all expected financings of some US$ 135 millions, will be made available, every Commune will be given at least 40 000 dollars”, she promised. The assigned share will not be the same for all, in consideration of the number of inhabitants and the existing infrastructures. It can come up to 250 000 dollars for a Commune. 

The FDL is a national public administrative institution which is backing communal actions in fringe of the Communes’ autonomy based on State’s decentralization. It is managed by the Ministry in charge of Decentralization and by the Finance Ministry. The FDL’s mission is the implementation of measures aiming at enhancing the local capacities, and at financing communal investments. 

Apart from direct foreign donations and financed development programs, the FDL has significant interior resources. The fund is fuelled by endowments, subsidies or State led resources transfers. It also receives a share of the taxes and royalties prescribed by law texts. Contest funds and home based donations are, besides, appear among its sources of revenues. There are quite many sources or home based financings: financial contributions, funds of donations and help counter value, the exceptional profits… some national and foreign financial contributions are also mobilized for the FDL. 

These funds granted to Communes are dedicated to run the budget’s balance as well as to fuel development projects. The uses of FDL are concerning investments’ expenditures of course, but also purchases, works, supplies and various services. The money can also be used to repay financial expenditures, and to pay the communal agents’ wages. Communes have available cash to repay loans. The use of the FDL is closely monitored by the State’s general inspection department.