The Interior Ministry announced on Sunday it is planning reforms that would transfer many of its powers to the local authorities.

The ministry said it views local authorities as businesses, and therefore, they must adopt codes of conduct like those in the business sector. In return, the 40 local authorities that are considered strong - including Tel Aviv-Jaffa, the Ramat Hanegev regional council and the Efrata local council - will be allowed greater independence in the use of their annual budget.

These authorities will no longer be required to report every expenditure or receive authorization for everything related to workers' salaries or human resources. In addition, they will have greater flexibility in determining municipal taxes (arnona). To determine which local authorities are eligible for these benefits, the Interior Ministry is examining their deficit levels, wage expenses and administration.

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In addition to the administrative issues related to greater budgetary independence, the Interior Ministry also said there would be legislative and construction-related decentralization of the authorities.

On the legislative side, the Knesset's inter-ministerial committee for legislation is to discuss a law that would determine the level of the local authority's independence based on one of four categories it falls into: independent, regular, undergoing reorganization, or in the process of recovery. The law would define the power, jobs and appointment procedures for local authorities. Elected officials would also be barred from signing off on jobs, salaries or other financial obligations, which would be left to the professional staff.

The construction-related part of the reform aims to make local committees, rather than district committees, responsible for planning and construction in an effort to expedite development. Local committees that prove themselves to be transparent and professional and involve the public will receive the authority previously vested in the district committees. Eight local committees thus far have qualified for increased authority, including the Tel Aviv, Afula and Lehavim committees.

In response to a question on weak local authorities - especially Arab ones - that do not receive anything more under the reforms, Interior Minister Roni Bar-On said Sunday that under the current situation, Arab local authorities do not fulfill the conditions necessary for receiving greater benefits. However, he added that the Interior Ministry would act to strengthen weak local authorities.