KLGI Institute and the Ministry of Finance held a two-day session on drafting the Draft Law on Local Government Finance.

KLGI Institute, in support of the Ministry of Finance, organized a two-day workshop on drafting the Draft Law on Local Government Finance (LFPL) on the dates (28-29 May) of the Working Group.

Working Group led by the Ministry of Finance and represented by line Ministries (MLGA, MEST, MLSW, MH); representatives of the Association of Kosovo Municipalities; KLGI Institute and the DEMOS Project, held a two-day workshop for drafting the Project Law on Local Government Finance, analyzing the options and addressing the general outline of the draft law.

During the ongoing discussions on drafting the draft law, the Working Group has expressed the need for defining financial resources, including municipal own source revenues, grants and other financial resources needed for the use of municipal competencies.

This Draft Law aims to provide a developed local finance system so that municipalities can use their competences and carry out their activities efficiently and effectively. First and foremost, this law is the basis for sustainable financing of municipal services.

Thus, the Draft Law on Local Government Finance provides a new approach for financing of municipal competencies; provides clarity for the financing of firefighters, market inspectors, sanitary and phyto-sanitary inspectors.

Beyond that, it strengthens the autonomy and discipline of municipalities in financial management, also helps to improve planning. At the same time, it strengthens the transparency in the allocation of municipal grants.

The draft law provides solutions for overcoming the challenges of municipalities with low financial sustainability, while responding to the dispute that has been created with the advancement of sectorial laws.

Generally, the field of local government finances represents the most substantial element that together with the decisions and other actions taken by the Government to open up new prospects for local economic development.

This activity was carried out within the project "Support for Stronger and Sustainable Municipalities (SSSM)" funded by the Royal Norwegian Embassy in Kosovo.