Project-Ligj për Financat e Vetëqeverisjes Vendore

The initiative began in 2014 with the adoption of the Administrative Territorial Reform, which reduced the number of local government units from 373 to 61. The reform aimed to strengthen local government and deepen decentralization, increase the efficiency of local government, and enhance the autonomy of local government in financial and functional matters. The Projekt-ligj is a response to the challenges faced by local government units in Albania, including the lack of a strong regulatory framework, frequent changes in funding sources, and inadequate budget management. The initiative aims to provide a stronger regulatory framework for local government finance, ensuring transparency and predictability in transfers from the central government to local government units. The Projekt-ligj has several key objectives, including ensuring the financial sustainability of local government units, guaranteeing transparency and predictability in transfers, ensuring the sufficiency of financial resources for local government units, and guaranteeing the autonomy of local government in financial matters. The initiative also aims to contribute to sustainable economic, social, and territorial development through the establishment of an effective mechanism for fiscal equalization. The Projekt-ligj is based on best practices in local government finance and has been supported by international organizations, including the United States Agency for International Development (USAID) and the Swiss Government. The initiative has been developed in consultation with various stakeholders, including local government units, civil society organizations, and international experts. The Projekt-ligj is expected to contribute to the strengthening of local government autonomy, the stability of the macro-fiscal and budgetary framework, and the improvement of the quality of public services. The initiative is also expected to promote dialogue between different levels of government and to ensure the participation of citizens in the decision-making process. The Projekt-ligj is a key component of the Albanian government's decentralization and local government finance reform program. The initiative is expected to have a positive impact on the country's economic and social development, and to contribute to the achievement of the government's strategic objectives in the areas of decentralization, local government finance, and public administration reform. The Projekt-ligj is based on a number of key principles, including the autonomy of local government, the transparency and predictability of transfers, the sufficiency of financial resources, and the autonomy of local government in financial matters. The initiative also aims to promote fiscal discipline, stability, and transparency in local government finance, and to ensure the participation of citizens in the decision-making process.