The budget for local governance in 2025 will be 9.3% higher than the previous year, with proportional increases across all municipalities in the country. The Minister of State for Local Government, Arbjan Mazniku, emphasized the government’s commitment to prioritizing local administration.

Why is this important: This budget increase exceeds both the national economic growth rate and the overall revenue increase, reflecting the government’s strategic focus on strengthening local governance. The significant allocation underscores the importance placed on municipalities and the role they play in the country’s development.

Context: In addition to the increase in allocated funds, local governments have improved their own revenue collection performance. Minister Mazniku highlighted that self-generated revenues are projected to grow by 11.7%, following a strong year for municipal income. This improvement is credited to better financial management and efficiency in tax collection at the local level.

What was said: “The total local budget has increased by 9.3% compared to the previous year, surpassing economic growth and overall budget revenue increases,” Mazniku stated at the Consultative Council meeting. He added, “This demonstrates that local governance is treated as a priority by the government.”

What’s next: Municipal budgets will also benefit from increased unconditional and sectoral transfers, including funding for salaries of local government employees. These wage increases aim to make local government jobs more competitive with the private sector, improving the retention and recruitment of skilled workers.