Local government still relies on the central government for funds

Local government still relies on the central government for funds
Four years after the implementation of the territorial reform, none of the municipalities manages to secure the necessary funds needed to provide services for citizens, while the central government continues to provide for them

Municipalities and communes in Albania continue to rely on the central government. If the central government does not provide them with funds, they would not be able to provide many of the vital services for their citizens. This, despite the fact that a while ago, they underwent a special reform, the territorial-administrative reform, which aimed at providing them with “local autonomy”. In other words, the aim was for them to be able to generate the necessary revenues and funding needed to provide the basic services for their residents. This is revealed in the latest report on “Local government finances 2017”. According to this report, none of the municipalities is able to generate more than 80% of their revenues. In fact, this is the highest figure for a large municipality such as the municipality of Tirana, which is able to generate more money from taxes. Meanwhile, there are also other municipalities such as the one in Has, which can only secure 2.5% of the revenues needed, or the one in Puka with 4.6% and the municipality of Dibra, with only 4.2%. These figures are considered to be very low. Nevertheless, experts say that in total, local government revenues saw an increase of up to 23% in 2017 compared to 18.9% in 2016 and -7.8% in 2015. However, experts are of the opinion that local government continues to rely on the central government for money.

 

 

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