Revenues from Local government vs Total Revenues of the Consolidated Budget and Tax Revenues

Revenues from the Local Government are one of the categories under the Tax Revenue section of the Consolidated Budget. Tax revenues account for 90% of the total revenues of the budget, nevertheless the revenues from the Local Government make a very modest contribution to the tax revenues and total revenues.
 


^{Source: Ministry of Finance
Comments and Analysis: Open Data Albania}

Referring to the final budget of the period 2000-2010, the revenues from the Local Government make up in average 4.6% of the Tax Revenues, and about 4% of the Total Revenues of the Consolidated Budget. Year 2005, which was the best year for Local Government revenues made up about 5.9% of the Total Revenues. After 2005, this indicator has contiuously declined until 2007, and despite signs of improvement in 2008-2009, it reached its lowest level in 2010 since 2002 when compared to the Total Budget Revenues.

The trend of the Tax Revenues and Total Revenues as well as the Local Government Revenues over these years can help analyze the movements of these indicators. For example, during 2000-2005 the Local Government Revenues have increased in average by about 34%/year, whereas the Tax Revenues and Total  Revenues have increased by an average of 12% and 9.3% respectively. As a result both indicators improved during this time. Meanwhile during 2006-2010 while the Tax Revenues and Total Revenues maintained their growth levels at 9.5% and 9.8%, the Local Government Revenues grew by an average of only 0.56%.

^{Source: Ministry of Finance
Comments and Analysis: Open Data Albania}

The forecast of the Revised Budget 2011 favors a slight improvement of both indicators, whereas the 2012 Budget projects a decrease of the Local Government Revenues. Still, the forecast that Local Government Revenues will amount to 4.3% of the Total Revenuesis considered a real challenge for the collectors of local revenues , based on the critics received for the high level of expectations for the “Revenues from the Construction Tax” due to the construction permits being suspended until the Territory Planning of the cities is completed.
All the information is shown in the table below:

^{Source: Ministry of Finance
Comments and Analysis: Open Data Albania}

Notes:

^{*Data for years 2000-2010 taken from Final Budget
*Data for year 2011 taken from Revised Budget
*Data for year 2012 taken from 2012 Budget approved in 5.12.2011}