2020 was the year that not only dealt a strong blow to the pockets of the central government, but also of the local government.
According to the data released by the Institute for the Development of the Habitat Co-Plan, municipalities collected €195 million (24.2 billion Albanian Lek), or 5.3% less in taxes and local tariffs, meanwhile, the government stimulated an increase in transfers to compensate for the losses and as a measure to cushion rising poverty levels during the pandemic.
A strong decline in local resources was noted in the municipality of Lezha, whose revenue was lessened by 57.3%, while Pusteci and Puka scored the highest performance.
Meanwhile, the property tax, despite expectations and the new methodology, did not yield any visible effect on municipal budgets, when in 2020, profits from this tax reached (3.8 billion Albanian Lek), with a 3.1% drop from 2019.
According to municipal authorities, this tax clearly carries an important weight in the capital with 45.5%, followed by Durres with 5.4%.
Furthermore, with public investments getting a significant reduction, expenditures on personnel and other operational expenses grew, including here the total number of the workforce which rose by 2.7% compared to 2019.
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