Department of Local Government and Regional Affairs

Director: Aðalsteinn Þorsteinsson

The Department's main role is strategic planning in local government and regional affairs. It is also responsible for supervision and co-ordination of administration, finance and planning of local authorities throughout Iceland. Regional and rural policy is also the responsibility of the Department, including regional and rural research, industrial development and industrial development organisations, and regional and development programmes. Its mandate includes the activities of the Municipal Equalisation Fund, which has the task of evening out different expenditure and revenue requirements of local authorities with contributions from the Fund, based on the legislation, regulations and working procedures adopted for the Fund's operation.

Functions and principal tasks

• Local government
• Division of responsibilities between the state and local authorities
• Local authorities' revenue bases
• Regional co-operation of local authorities and mergers
• Municipal Equalisation Fund
• Supervision of local authorities' finances
• Regional development
• Regional action plans