Municipal Revenues Triple as Performance Grant Drives Major Change

TIRANA, November 25 – Minister for Local Government Ervin Demo said that Albanian municipalities delivered historic progress in financial management, public services and good governance, bringing them closer to European standards.
Speaking at a conference in Tirana that introduced the municipal performance measurement system, Demo reported a sharp rise in local revenues. Own-source revenues reached 44.4 billion Lekë in 2024, tripling since 2015. Property tax revenues also increased significantly, climbing from 3.9 billion Lekë in 2015 to 7.2 billion Lekë in 2024, which he described as clear evidence of more efficient administration.
The minister further underlined a major drop in overdue liabilities. Outstanding obligations decreased from 12 billion Lekë in 2015 to 3.1 billion Lekë in 2024, a development he called an important step toward fiscal discipline.
Turning to public services, Demo highlighted improvements in preschool education, irrigation and drainage, and waste management. Cost coverage for waste services rose from 68 percent in 2023 to 83 percent in 2024, while the child-to-teacher ratio in kindergartens and nurseries is moving closer to European Union averages.
He also emphasized the transformative impact of the Performance-Based Grant. All sixty-one municipalities now operate with strategic planning documents and are prepared to draft projects for European Union funds, a practice he described as fully aligned with European governance standards.
Demo concluded by announcing new cooperation with the national statistics institute and other bodies to build an integrated local government data system.
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