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It does so by assessing notional costs of local responsibilities, and by estimating the local own revenues capacity, while strengthening the institutional capacity of the Group of Experts for Decentralization (GED). To achieve this major objective a team of international and local consultants is engaged in the project. There are several components relate to this research, mainly:
- Undertake a review of the current regulation related to local finance, to be able than to identify possible flaws, and propose corrective adjustments to the Government;
- Define feasible standards of public services to be delivered locally, and propose measurable performances indicators, aiming at eliminating unfounded mandates and holding local authorities accountable;
- Assess notional costs of public services to be delivered locally;
- Assess local own revenue capacity, as compared to the actual local revenue, and propose concrete measured to improve collection;
- Evaluate the size of fiscal imbalances and regional disparities, and propose ways to ameliorate the current situation, taking into consideration the decentralization targets.
Copies of this study are available at the URI Tirana office.
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