TIRANA, Nov 25 /ATA/ The Minister of State for Local Government, Ervin Demo, stated that Albanian municipalities have made historic progress in financial management, public services, and good governance, moving closer to European standards.
At today’s conference in Tirana, which rolled out the municipal performance measurement system, Minister Demo reported that municipal own-source revenues reached 44.4 billion lek in 2024, tripling since 2015. Property tax revenues rose by 84.6%, from 3.9 billion lek in 2015 to 7.2 billion lek in 2024, underscoring a clear improvement in local financial management efficiency.
He emphasized that municipal arrears have decreased from 12 billion lek in 2015 to just 3.1 billion lek in 2024, describing this as “a significant step toward fiscal discipline and sound financial management.
Minister Demo highlighted notable progress in public services, particularly in preschool education, irrigation-drainage, and waste management.
“Coverage of waste service costs rose from 68% in 2023 to 83% in 2024, while the child-to-teacher ratio in kindergartens and nurseries is nearing the EU average,” he noted.
Speaking about the Performance-Based Grant, Minister Demo described it as a transformative instrument for local government.
Demo emphasized that all 61 municipalities in the country are now equipped with strategic planning documents and ready to implement European-funded projects, describing the mechanism as “more than just financing—it is a real European practice.”
Demo also announced the launch of a collaboration with INSTAT and other institutions to establish an integrated local data system, which will serve as a foundation for decision-making and performance measurement in the coming years.
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