The meeting held in the Elbasan municipality marked the start of the presentation of thematic tables, where the main findings of the 2023 Performance Report were presented and the Performance-Based Grant Mechanism was explained. The main focus of this table was local finances, highlighting their achievements and challenges.

A decade after the implementation of the Administrative-Territorial Reform, municipalities have made significant progress in strengthening their financial autonomy and increasing their role in economic development. Their per capita income has increased significantly, from 4,634 lek in 2015 to 14,527 lek in 2023, while per capita investments have increased by 78%. In addition, a significant reduction in arrears of municipalities has been achieved, which have decreased by 7 billion lek. This progress reflects the ongoing efforts to improve financial management and optimize resources, reducing dependence on conditional transfers and increasing financing with own revenues.

The implementation of the new methodology for performance measurement, in combination with support through the Performance-Based Grant, has opened new opportunities for advancing local government standards. The GBP mechanism consists of several main conditions, including the preparation and approval of six local plans, as well as the timely implementation and with accurate and reliable data of the performance measurement process. In terms of financial management, the GBP also has the fulfillment of three financial conditions related to budget execution, reduction of arrears and increased collection of real estate tax.

This mechanism enables all municipalities to meet the criteria for its benefit, creating new spaces for improving the quality of services for citizens and strengthening the capacities of local government. At the end of the meeting, an open discussion was held regarding the improvement of indicators in the next round of the SMP, focusing on the needs and concrete problems faced by municipalities.