Dependent on state subsidies, communes are struggling to fund their missions. A survey of sixty-seven of them reveals that collected revenues cover only 34.7% of their actual needs.
Financial resources are a major issue for Malagasy communes. Caught between dependence on state subsidies and weak local tax revenues, territorial collectivities have limited room to exercise their competencies. Data presented by Rado Milijaona, a magistrate and chartered accountant, during a conference held on September 29 in Antananarivo, illustrates this difficulty.
In the studied communes, state subsidies account for 51% of revenues, compared to only 18% for local taxes. Based on a survey of 67 communes across 23 regions for the 2021-2023 period, these figures highlight the weight of public transfers in local financing. Collected revenues cover only 34.7% of actual needs, while personnel costs absorb about 43% of communal revenues.
This distribution raises the question of the means actually available for local investments. When operating expenses consume a significant portion of resources, the ability of communes to fund their priorities is reduced. The issue goes beyond simple budget management: it also concerns the conditions under which local authorities can exercise the responsibilities entrusted to them.
This topic was addressed during the conference “Cross-perspectives from Madagascar and Germany on territorial autonomy: decentralization and federalism,” organized by the Konstitution’naka project. Discussions focused on the distribution of competencies and resources, the redistribution of revenues collected by the central government to local authorities, and the difficulties in accessing loans for the majority of rural communes.
The German experience served as a point of comparison. Herta Däubler-Gmelin, former Federal Minister of Justice, presented a system where competencies are divided between the Federation and the sixteen Länder. Financial equalization mechanisms aim to reduce disparities between territories. German Ambassador Oliver Knoerich also recalled the importance of clearly determining who decides, who finances, who implements, and who controls.
At the end of the discussions, a principle was highlighted: the transfer of competencies to local authorities must be accompanied by the financial resources necessary for their exercise. Participants discussed the possibility of strengthening the constitutional guarantees surrounding this distribution. For Madagascar, the challenge remains to ensure the adequacy between the responsibilities entrusted to the communes and the means they have to fulfill them.
Captured & Published at: 2026-10-15 05:54:27 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/10/connectivites-les-communes-face-au-defi.html
