USAID Advances Dialogue on Local Self-Government Finance

TIRANA, ALBANIA     On April 17th, USAID’s Planning and Local Governance Project and the Ministry of Finance and Economy organized a national conference whose participants included Mayors from all municipalities throughout Albania, local government associations, the Agency for the Support of Local Self-Government, civil society representatives, and donor community representatives. The Minister of Finance highlighted results of the Law on Local Self-Government Finance, such as the 37% increase of local revenues (16.5 billion Lek) from unconditional grants and shared taxes, compared to the historical average (12.7 billion Lek) of the past 10 years. The Minister recognized the current climate as an important opportunity to enhance the autonomy of local governments, to promote capital investments and enhance local economic development. Mayors expressed concerns about the adequacy of the fiscal equalization system and the property tax reform.