4.6 million euros performance grant for municipalities/ Criteria and calculation, What is the distribution formula?
61 municipalities in the country will have the opportunity to apply for the Performance-Based Grant (GBP), which is made available with the aim of encouraging and empowering municipalities to increase the efficiency and quality of their governance.
The Performance-Based Grant, for 2025, has a domestic funding source, in the amount of 200 million lek or 2 million euros, as a special item of the fund allocated to the local budget as an unconditional sectoral transfer; foreign, in the amount of 260 million lek or 2.6 million euros from the Government of the Swiss Confederation, represented by the Swiss Agency for Development and Cooperation (SDC) and the Swedish Agency for Development and Cooperation (SIDA).
The preparation period for applications from municipalities will be until September 17, 2025, approval of winning municipalities: September–October and allocation of funds: October–November 2025.
The Performance Based Grants (PBG) Fund is distributed to each municipality according to a performance measurement system that assesses the fulfillment of established indicators.
The indicators that municipalities must meet include the Forest Management Plan; Local Waste Management Plan; Local Social Plan; Local Pre-University Education Plan; Local Gender Equality Plan; Integrity Plan; Performance Measurement Indicators reported on time; Trained Performance Unit Staff; Arrears Indicator; Budget Execution Indicator; Real Estate Tax Indicator, each of which accounts for a specific percentage in the grant calculation.
Municipalities that meet the GBP indicators in 2025 will be allocated an amount that is proportional to the weight assigned to each indicator and an additional fund that is calculated proportionally based on the remaining funds and the indicators met.
The additional amount is distributed among all participating municipalities for 2025, proportionally to the indicators met, but in no case more than four times the fixed amount received.
The performance grant in 2025 will be distributed to the beneficiary municipalities in the form of an unconditional sectoral transfer. The municipalities have complete independence of the destination of the use of this fund, with the exception of personnel expenses and bonuses. Unused funds from the performance grant received by the municipalities in 2025 with the source of financing the unconditional sectoral transfer, are inherited in 2026 to be used for the same
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