The municipalities handle tasks that can best be dealt with locally thanks to the close contact with the daily life of the citizens.
The rational issue behind the creation of larger municipalities has been to improve their ability to handle the increasing number of municipal tasks. The municipalities have thus taken over a number of new activities, among other things environmental control, adult education and specialised social services.
Another new task for the municipalities is in the field of employment policies. The new employment system is organised with local job centres so that citizens and companies have a single common access point to employment activities. The idea is to put the present activities under one roof instead of a shared responsibility between the state and the municipalities.
The primary revenue of the local authority comes from income tax and real property tax. The level of the local tax varies from municipality to municipality. In addition, the local authorities receive an annual block grant from the Government.