Consultative meeting on fiscal decentralization

In the framework of activities supporting fiscal decentralization, DLDP, in cooperation with the Finance Ministry and PLGP / USAID, organized on October 16th, 2015, in the premises of Hotel Tirana International,aconsultative meeting on fiscal decentralization, with the presence of almost all mayors of the country, as well as local finances experts, civil society and donors’ representatives. 

The meeting aimed at promotion of consultations and dialogue between central government and local governmental units on the main reforms affecting local finances, presentation of changes to the formula allocation of the governmental unconditional transfer and other complementary measures for improving financial situation of local governmental units, including financial management and strategic planning, and also giving inputs on necessary measures to strengthen local governmental units and ensure effective implementation of the administrative-territorial reform. 

The meeting was greeted by the Finance Minister, Mr Shkëlqim Cani, who reaffirmed the will of the government to continue the reforms on the modernization of the government in local level. 

PLGP/USAID program expert, Mr Fran Brahimi, in cooperation with Finance Ministry experts, presented the draft document on the allocation formula of the governmental unconditional transfer, explaining in a comparative way the current formula towards the new features of the new document, compiled for and in cooperation with the Finance Ministry. Also, experts from the State Ministry for Local Issues presented the new functions that it is thought to transfer to municipalities and the way of financing them. In this meeting was discussed for the measures to be taken to strengthen fiscal decentralization by the presentations of Mrs Arjana Dyrmishi, Vice-minister of Finances, and PLGLP expert, Mrs Silvana Meko, with a special focus on the new fiscal package, the reform on property tax, and the establishment of the fiscal cadastre. 

In this meeting, DLDP, through its program manager, Mrs Valbona Karakaçi, stressed the need for the measures to be taken to improve the management of finances in local level. She also presented the DLDP experience in performance bench-marking as regards local finances in local level, by using the PEFA draft report, prepared by DLDP, as the first report created in the local level in Albania. 

Mayors of different municipalities (Vangjush Dako – Durrës, Qazim Sejdini – Elbasan, and Voltana Ademi – Shkodër) asked for more funds for their municipalities, through changes in the criteria of calculation of the allocation of the non-conditional grants, as well as for more transparency as regards the transfer of functions that are to be transferred to municipalities together with relevant financial information.