PUBLIC FINANCE MANAGEMENT

In the area of PFM, dldp developed in its 2nd phase the SDPeMTBP approach, where “SDP” stands for strategic development planning, “MTBP” for medium-term budgeting based on a performance oriented program structure and “e” represents the excel-based financial planning tool (FPT) elaborated to facilitate coherent financial plans for the medium term in a combined top-down and bottom-up process. The SDPeMTBP approach was elaborated in full compliance with the legal budgeting requirements of Albania, especially taking into account law No. 9936, enacted in 2008, “On the management of budgetary system in the republic of Albania”. However, at the beginning of dldp2, the concept of MTBP, required by low No. 9936 in its article 26, was rather unclear for most of the stakeholders at local level.  

• The SDPeMTBP approach was fully tested and applied in 8 LGUs up to 2013
• It is noticeable that LGUs supported by dldp fulfil the requirements on the comprehensiveness to a great extent (90% compared to 38% to non-dldp), are clearly better ranked in the identification of planning risks in the MTBPs (dldp LGUs 89% / non-dldp 38%), and information on the debt stock (dldp LGUs 90%, non-dldp 55%), while there is even a bigger difference in available program information (dldp 100% / non-dldp 18%).
• Transparency and participation in policy planning and budgeting: The results from the thematic evaluation for transparency in policy planning and participation ranked more than 60% of the LGUs supported from dldp as good or even excellent with rates A or B on a scale from A-D.
• SDPeMTBP approach is increasingly used in the LGUs of Shkodra and Lezha. New SDPs were elaborated or updated with support of dldp, the formal quality of the MTBP improved considerably and in addition, the financial planning tool FPT was finalized and successfully used.  
• dldp is regularly consulted by the directorate of inter-governmental fiscal relations of the MoF before the budgeting guidelines are issued, and the input of dldp is taken into consideration in many cases. Furthermore, the MoF fully stands behind the financial planning tool FPT, and is promoting its application countrywide. Finally, the directorate for intergovernmental fiscal relations crosschecked and supported the finalization of the training handbook on strategic development planning and performance-based budgeting in the medium-term.