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The President decreed the law on Territorial Reform, the 2027 Budget continues to allocate funds to 61 municipalities

2026-11-02 14:31:00 / EKONOMI&SOCIALE ALFA PRESS

The President decreed the law on Territorial Reform, the 2027 Budget continues

The government has drafted the local government budget for 2027 based on the old administrative-territorial division of 61 municipalities, although the Parliament approved the new reform on October 9 that reduces their number to 46.

The budget transfer table for next year continues to treat as independent financing units the 15 municipalities that, according to the reform, will merge with other municipalities. The draft budget does not yet reflect how funds will be redistributed after the territorial reorganization, which is expected to be implemented in the 2027 local elections.

According to the draft budget, from the "unconditional transfer to municipalities for 2027", the government plans to distribute a total of 48.2 billion lek to the 61 existing municipalities, through the general transfer and sectoral transfers.

Of this amount, 26.83 billion lek is an unconditional general transfer, while the rest is allocated for specific functions, including preschool and pre-university education, fire protection, rural roads, irrigation and drainage, forest administration, wage increases, and urban waste management.

The Assembly approved on October 9, 2026, with 85 votes in favor, the new territorial division, which foresees the merger of 15 municipalities as independent units and their merger with other municipalities. The reform aims to concentrate financial and administrative resources, reduce operating costs and improve local services.

For example, one of the cases is the Municipality of Fushë-Arrëz, which according to the new reform will merge with Puka. In the 2027 draft budget, Fushë-Arrëz appears with a transfer of 299.2 million lek, while Puka with 377.5 million lek. Both municipalities are treated as separate financing units. The same situation occurs for Klosi, which will merge with Mati. The draft budget foresees 362.2 million lek for Klosi and 618.2 million lek for Mati.

In the Tirana district, Rrogozhina, which will merge with Kavaja, has a separate funding of 396.2 million lek, while Kavaja has 738.1 million lek. In the Fier district, Patosi and Divjaka continue to have separate transfers of 416.6 million lek and 575 million lek respectively, although the reform foresees their merger with Fier and Lushnja.

Even in the Elbasan region, the municipalities of Cërrik and Belsh appear with separate funding, although according to the new map they will be included in the Municipality of Elbasan.

The same financing method is followed by the draft budget for other municipalities included in the territorial reorganization, such as Maliqi, Përrenjasi, Këlcyra, Memaliaj and Libohova.

The merger of municipalities changes the administrative structure that will manage these funds, even in cases where the population, territory and service needs remain the same. For example, funding for local administration, education, fire protection, road maintenance or forest management may require reorganization between the merging units.

For this reason, the adoption of the territorial reform creates the need to clarify not only the destination of budgetary transfers, but also the competencies, personnel, existing obligations and administration of funds after the merger of local units.

The implementation of the territorial reform is expected to be linked to the local elections in 2027. Until the institutional reorganization, the existing municipalities will continue to perform their functions and need funding . /Monitor

The President decreed the law on Territorial Reform, the 2027 Budget continues

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