Municipality of Tirana is the main beneficiary of the funds allocated by the State Budget for Local Government Units in the form of Unconditional Transfer (UT). Over the years, this municipality attained at least 2-3 times more UT than the second most financed municipality. The following chart provides an overview of the performance of UT for Tirana Municipality through the specific formula that distributes UT during 2004-2012.

 


Source: Ministry of Finance
Comments and Analysis Open Data Albania (ODA)

Data for the years 2004-2007, 2009, 2012 is taken from the Initial Budget
Data for the year 2008 is taken from Revised Budget (Supplementary Budget)
Data for the years 2010-2011 is taken from Revised Budget

During 2004 and 2005 the level of UT for the municipality of Tirana remained at the same level about 358 million ALL, while in 2006 the level of UT increased persistently. In 2007 funds from UT were about 30% higher than a year ago, while in 2008, 53.6% more. In 2009 is noted the highest level of UT, which was about 967 million ALL or 2.7 times higher comparing with 2004 and 2005. After a contraction in 2010 round 10%, it appears that UT levels in the following years are generally fluctuated at the same levels.

 


Source: Ministry of Finance 
Comments and Analysis Open Data Albania (ODA

Data for the years 2004-2007, 2009, 2012 is taken from the Initial Budget
Data for the year 2008 is taken from Revised Budget (Supplementary Budget)
Data for the years 2010-2011 is taken from Revised Budget

If we compare the growth pace of UT for the Municipality of Tirana (MT) to the growth pace of UT for all municipalities and communes, we will see that only during 2005 and 2006 that the growth rate for MT has been lower compared to total growth of UT . In 2008, while the amount of Unconditional Transfers distributed through the formula provided in the Budget Law was 13.77% higher than in 2007, UT for MT rose 53.6% compared with a year ago.

Even in 2010, a year characterized by a reduction of the UT for the municipalities and communes from the State Budget, the part of UT provided for the municipality of Tirana was reduced at a lower rate (by 10.73%) than the total reduction of UT (12.64%).

Meanwhile, through Budget 2012, for the Municipality of Tirana are forecasted only 2.46% more funds in the form of UT compared to 2011.

All the information is presented in the dynamic table below:



Source: Ministry of Finance
Comments and Analysis Open Data Albania (ODA

In calculations of growth rate of total UT is not considered the amount that is distributed through the Competitive Grant Scheme or Regional Development Fund, but only the part of UT directly determined for each municipality and communes through a formula that is provided in the Budget Law of each year. For more on UT for municipalities refer to the article in open.data.al “Unconditional Transfers for municipalities and communes”