Raport vjetor 2018 Financat Publike Vendore

The report provides an overview of the financial performance of local government units in Albania for the year 2018. The report highlights the significant progress made in recent years in terms of financial management at the central and local levels. The administrative-territorial reform, accompanied by the deepening and consolidation of decentralization, has led to a significant increase in funds allocated to local government. The approval of the Law on Local Self-Government Finance and the subordinate acts implementing it have improved the management of public finances at the local level. The report notes that the transfer of funds from the central government to local government has increased by 42% compared to 2015, the year before the implementation of the administrative-territorial reform. Additionally, the competencies of municipalities have been improved, enabling them to set and collect local taxes and tariffs, providing more services and public investments to communities. The Ministry of Finance and Economy has directed significant reforms over the past three years, increasing and improving the regulatory framework for local government financing sources. These sources are used autonomously by municipalities and districts, without the intervention of the central government, indicating an increase in local fiscal and financial autonomy, a key element for strengthening local government and democracy. The report emphasizes that this increase in autonomy should be accompanied by an improvement in the quality of services provided by local government units, ensuring the efficient, effective, and economic use of financial resources available. To harmonize the increase in autonomy with fiscal and financial discipline, the Ministry of Finance and Economy has approved a package of subordinate acts that strengthen and harmonize the processes of budget planning, implementation, reporting, monitoring, and transparency of local government budgets. The report is the first official report of the Ministry of Finance and Economy, entirely dedicated to analyzing the trends and performance of local finances. It is part of the Ministry's efforts to increase transparency and accountability regarding the use of public finances at the central and local levels. The report also provides information on the sources of revenue and how the Municipality and District use the funds, presented in a simplified manner to help citizens and interest groups understand local financial management and participate in decision-making by local authorities. The report was prepared by the Directorate of Local Finance of the Ministry of Finance and Economy, with the support of the USAID Local Governance Project (PLGP) and the Network of Local Authorities of Southeastern Europe (NALAS), providing an independent perspective on the analysis presented and a dedicated chapter for comparing local finances in Albania with those of the region. The report is structured into five chapters: an overview, methodology, performance and trends of local finances in 2018, comparison of local finances in Albania with those of the region, and profiles and analysis of budgets by municipality. Chapter 3 provides an overview of the general trend of local government revenue and expenditure in 2018, highlighting the differences between municipalities in terms of revenue and expenditure performance. The chapter also presents the general trend of local government expenditure and the differences between municipalities in terms of expenditure performance. Chapter 4 compares local finances in Albania with those of the region, highlighting the similarities and differences between the two. The chapter provides an overview of the financial performance of local government units in Albania and the region, highlighting the strengths and weaknesses of local finances in Albania. Chapter 5 presents profiles and analysis of budgets by municipality, providing an overview of the financial performance of each municipality in 2018. The chapter highlights the strengths and weaknesses of each municipality's budget, providing recommendations for improvement. The report concludes by emphasizing the importance of improving the quality of services provided by local government units and ensuring the efficient, effective, and economic use of financial resources available. The report also highlights the need for continued reform and improvement in local financial management, ensuring the sustainability and effectiveness of local government finances.