2 million euro performance grant for 61 municipalities - Application deadline and distribution criteria
Municipalities have the opportunity to apply for the Performance-Based Grant for 2025. The Local Self-Government Support Agency announces that this grant aims to support municipalities in improving the efficiency of local government and providing better quality services to the community.
The deadline for applications is September 17, 2025. The Performance Based Grant (GBP) is a funding that supports municipalities based on the results achieved. This funding is distributed depending on the fulfillment of measurable objectives and real impact, and is not offered in advance.
The scheme will focus on performance-based financing, where payments are based on results achieved, ensuring efficiency and transparency.
Regular monitoring – Beneficiaries report on the progress and impact of the project to ensure sustainable support.
Incentive for development – This mechanism encourages innovation, responsibility, and continuous improvement.
In total, municipalities will be given 200 million lek or 2 million euros, based mainly on their financial performance, tax-fee collection, and transparency, etc.
For 2025, the budget for the 61 municipalities in the country is 90 billion lek, up from 71 billion lek in 2024. The government provides approximately 43 billion lek to local government units in the form of an unconditional transfer, while they must provide the rest themselves.
The 61 municipalities in the country have a 13.2% higher budget to spend this year compared to 2024.
Domestic spending has also increased in relation to GDP, where by 2025 it will account for 3.43% of GDP, up from 2.9% in 2024, or 2.3% in 2015.
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