The amendment of the Law on Local Government Finance requires an open and inclusive consultation process

Within the support provided towards the process of drafting the Law on Local Government Finance, the KLGI Institute in cooperation with the Ministry of Finance and DEMOS has initiated the consultation process with relevant stakeholders. Apart from consultative meetings, study visits are also being organized in the region with the aim of exchanging experiences in the area of local finances.

In separate sessions, the KLGI Institute is organizing workshops with stakeholders from central and local level, as well as with civil society representatives. The workshops are addressing the main issues and challenges that need to be tackled within the new Law on Local Government Finance.

The first group composed by the central and local level representatives (Ministry of Finance, Directors of Municipal Budget, DEMOS) identified and elaborated issues that are related to their daily engagements and activities in the field of local finances. The group provided and evaluated proposals on various issues, including: revenue collection, grants (education, health, social services), co-financing, multi-year commitments, accounting and financial reporting, additional revenues, representation of municipalities in the Grants Commission and funds that are transferred from the previous year to municipalities.

Considering the need to extend the involvement of stakeholders at this stage, the second group composed by the central level (Ministry of Finance, Line Ministries) addressed the inputs provided by municipalities. It was a common agreement that this process requires a multi-disciplinary approach, as well as engagement and inclusiveness so that the new Law increases efficiency and effectiveness.

In this context, the second group held a joint meeting at the Ministry of Finance in the Republic of Albania with the General Director of Budget, Ms. Mimoza Dhembi and Director of Local Finance, Mr. Fran Brahimi. Mr. Brahimi delivered a comprehensive overview on local governance, including the history, achievements and challenges in this area. Mr. Brahimi pointed out that the drafting and adoption of this Law was followed by a comprehensive and open process for more than 16 months of focused discussions and consultations with the interested stakeholders.

Representatives of both countries agreed to further strengthen their partnership by sharing experiences and lessons learned throughout the process.

Focused discussions will continue with the purpose of drawing concrete conclusions and proposals. The KLGI Institute will continue to provide professional and technical support in the upcoming stages of drafting the Law on Local Government Finance.