Local Government Debt and Fiscal Autonomy

Sorina Koti– University “Fan S. Noli” Korce-Albania, Bulevardi Rilindasit 11, Korce, Albania

Abstract: The purpose of the study is to analyse and discuss the local government debt and fiscal autonomy. It is very important to understand the composition of the municipal budget, its own income and government transfers. The study will analyse the revenues and expenses of municipalities (operational and capital) as well as the ways of financing investments. Literature and statistical data show the financial inability of the local government to cover expenses and to invest in public works. Some municipalities have received loans from Second Level Banks for capital investments. Furthermore, the study will analyse the use of debt, its effects and its efficiency. In Albania, the fiscal autonomy of the local government is still a problem, since the municipalities find it impossible to generate income and meet the needs for investments and expenses, bringing a strong dependence on the central government. Also, the study will discuss the ways how municipalities can increase their level of income, their good management and the increase of financial autonomy.

10th International Scientific Conference ERAZ 2024 – Conference Proceedings: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT,  hybrid – online, virtually and in person, Lisbon, Portugal, June 6, 2024

ERAZ Conference Proceedings published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Logistics, University of Maribor, Maribor (Slovenia); University of National and World Economy – UNWE, Sofia (Bulgaria); Center for Political Research and Documentation (KEPET), Research Laboratory of the Department of Political Science of University of Crete (Greece); Institute of Public Finance – Zagreb (Croatia); Faculty of Tourism and Hospitality Ohrid, University of St. Kliment Ohridski from Bitola (North Macedonia)

ERAZ Conference 2024 Conference Proceedings: ISBN 978-86-80194-86-8, ISSN 2683-5568,

DOI: https://doi.org/10.31410/ERAZ.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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