KLGI and the Ministry of Finance held a two-day session on drafting the Draft Law on Local Government Finance

The KLGI Institute, continuing its support for the Ministry of Finance, organised a two-day workshop (28 – 29 May) of the Working Group for drafting the Draft Law on Local Government Finance (LLGF).

The working group, led by the Ministry of Finance and made up of line ministries (MLGA; MEST; MLSW; MoH), representatives of the Association of Kosovo Municipalities, the KLGI Institute and the DEMOS project, held a two-day workshop on drafting the Draft Law on Local Government Finance, analysing options and addressing the general outline of the draft law.

During the ongoing discussions on drafting the draft law, the Working Group has identified the need to define financial resources, including municipal own-source revenues, grants and other financial resources needed for the exercise of municipal competences.

This draft law aims to ensure a developed system of local finance so that municipalities can exercise their competences and carry out their activities efficiently and effectively. Above all, this law is the foundation for the sustainable funding of municipal services.

The Draft Law on Local Government Finance thus offers a new approach to funding municipal competences; it provides clarity on the funding of firefighters, market inspectors, and sanitary and phytosanitary inspectors.

Beyond this, it strengthens municipalities' autonomy and discipline in financial management, also helping to improve planning. At the same time, it strengthens transparency in the allocation of municipal grants.

The draft law offers solutions for overcoming the challenges of municipalities with low financial sustainability, while also responding to the dispute that has arisen with the advances in sectoral laws.

In general, the field of local government finance is the most substantial element which, together with other decisions and actions taken by the Government, opens a new perspective for local economic development.

This activity was carried out within the project ‘Support for Stronger and More Sustainable Municipalities (SSSM)’, funded by the Royal Norwegian Embassy in Kosovo.