The PBO testified before the Parliamentary Committee for Fiscal Federalism on recent trends in the fiscal autonomy of municipalities and regions. During the hearing, participants discussed the choices made in recent years by local governmentsin deploying fiscal measures and the areas in which there is still room for increasing current revenues. The discussion also emphasised how the ability of municipalities to exercise fiscal autonomy was affected by the reduction in standard financial resources available and by the absence of a system for allocating financial resources based upon equalising mechanisms, i.e. based on the differing revenue generating capacities of local governments.