Municipalities triple their revenues in 10 years - Over 400 million euros collected in 2024, but again "in the hands" of the government
Municipalities have significantly increased their revenue collection performance over the years, despite still not reaching their full potential.
According to an analysis conducted by "Altax", local government revenues have had a steady increase, reaching 40.3 billion lek in 2024, from 12.4 billion lek in 2014, by nearly 225%.
According to the analysis, this increase is an indicator of improved financial management by local authorities, which have increased tax collection and implemented good fiscal policies.
Meanwhile, this trend may also be linked to greater decentralization of revenues and expenditures.
The analysis concludes that local government revenues, which include local taxes such as property taxes and small business taxes, have increased, but they remain largely dependent on state budget transfers. This dependence is an unfavorable indicator for local budgets, as local authorities are often unable to generate sufficient resources to cover necessary local expenditures.
It is also highlighted that the performance of local government, which relies mainly on transfers from the state budget, has had limits regarding financial autonomy and support for pensions and social services at the local level. The growth of these revenues, especially from local taxes, is highly dependent on the fiscal and economic policies of the central government, and these transfers are often not sufficient to cover the increased demands for pensions.
But while revenues have increased, the analysis shows that this performance has not been aligned with long-term projections to cope with future pressures and budgetary sustainability.
It is also emphasized that the responsibility for social policies seems to have lacked the vision required by future challenges, which today constitute a strong threat to the budget. While the lack of clear strategies for addressing the differences between revenues and necessary expenditures is considered to have created a gap that requires a greater commitment from fiscal and social policies.
Poll
Sa ju bindin programet ekonomike të partive për zgjedhjet e 11 majit 2025?
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