Local Government Financing and Sustainable Development: The Case of Albania

Abstract

Local government is one of the most important pillars of good governance of a society, an important indicator to express the essential role it has in the sustainable development (SD) of a country. The reforms undertaken in Albania in terms of increasing the fiscal and functional capacity of local government, connect it more and more with all components of SD. The use and maximization of the capacities of the local government in order to improve the basic goals of SD, is supported not only by the theoretical connection of functions but also by the experience of developed countries with a deep decentralization. In Albania, the local government receives revenues in the form of central government transfers and its own. These revenues are used by the local government to finance public services that have a direct impact on the lives of citizens but also to improve the quality of life. Both forms of local government revenue are at full discretion to be used by local selfgovernment units and to improve measurable indicators of increasing the quality of public services and financing sustainable development.