Performance system for municipalities - Demo: Grant, based on implementation of plans
Municipalities have made progress in financial management, public services, and good governance, moving closer to European standards.
During the conference where the municipal performance measurement system was presented, the Minister of Local Government, Ervin Demo, stated that for 2026, the performance grant will be awarded for the implementation of plans drafted by municipalities.
“Revenues from municipalities’ own sources have reached 44.4 billion lek in 2024, tripling compared to 2015. Revenues from property taxes have increased by 84.6%, from 3.9 billion lek in 2015 to 7.2 billion lek in 2024. Today, all 61 municipalities in the country are equipped with strategic planning documents and ready for European fund projects. This mechanism is not just financing, but a real European exercise.”
Ruth Huber, Ambassador of Switzerland to Albania:
"Local government performance is improving, but this report also highlights challenges that need to be addressed. The system that has been put in place to measure performance and grants are very important to increase transparency and the quality of public services. In most cases, these plans were made independently. This is an important step towards the maturity and leadership of local government and this shows that municipalities are ready to develop themselves and we are encouraged that municipal plans are in step with central policies. Thus, Albania is preparing even better for EU integration. We are seeing that governance is based on performance and this brings data-based decisions and results-based financing."
The conference also announced the launch of cooperation with INSTAT and other institutions to establish an integrated local data system, which will serve as a basis for decision-making and performance measurement over the years.
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