https://www.facebook.com/shoqatakombetareebashkive/posts/1428006086026042?ref=embed_post

📊 Meeting with IMF on local finances in Albania
In a constructive meeting with the International Monetary Fund (IMF) team, the Executive Director of #ShKBSH Ms. Adelina Farrici discussed the challenges and prospects of local government finances in Albania, with a focus on:
• 💰 Municipal revenues from own sources and transfers
• 🏛️ the need to strengthen local fiscal autonomy
• 🤝 improving financial relations between central and local governments
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📌 In this context, ShKBSH, following the administrative-territorial reform, has drafted a detailed document on improving local finances, which has been submitted to the Special Commission for Reform and Decentralization. 📄
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🔑 Main recommendations of the SHKBSH:
• 📈 Gradual increase in local financing from ~1% to 2–5% of GDP
• 🏛️ Real strengthening of the fiscal autonomy of municipalities
• 💰 Increase in the percentage of municipalities’ benefits from TAP and mineral royalties
• 📊 Expansion of shared taxes for more financial stability
• ⚖️ Review of the Unconditional Transfer formula
• 🤝 Strengthening of equalization mechanisms between municipalities
• 🧾 Creation and functionalization of the fiscal cadastre at the local level
• 🏘️ Increase in property tax revenues and better control of the territory
• 📉➡️📈 Automatic indexation of the transfer (inflation + economic growth)
• 📅 Ensuring long-term fiscal predictability
• 🛡️ Compensation mechanism for central government fiscal decisions
• 🗺️ Fairer distribution of grants investments at the regional level
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💬 The aim of these proposals is to strengthen fiscal autonomy, reduce inequalities between municipalities and build a fairer and more sustainable system of local financing in Albania.