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GG 28. 2 Municipalities must be guaranteed the right to regulate all local affairs on their own responsibility , within the limits prescribed by the laws . Within the limits of their functions designated by a law , associations of municipalities shall also have the right of self-government according to the laws . The guarantee of self-government shall extend to the bases of financial autonomy ; these bases shall include the right of municipalities to a source of tax revenues based upon economic ability and the right to establish the rates at which these sources shall be taxed .