Citizens’ engagement in local budget decision-making – Example of municipalities in Albania

Our approach is based on the goal that transparency enables disclosure and reduces the likelihood of corrupt behavior because it lowers information barriers, allowing analysis and monitoring by the public.

Accountability through consultation also curbs corruption by increasing the chances of it being caught.

Our project Budget from the citizens’ point of view, which is based on the Social Audit methodology, implemented since 2022 in Albania is a civil initiative that serves as a defiance approach and reflection of the citizen’s voice.

The budget from the perspective of citizens is a simpler and less technical version of the municipal budget, designed specifically to be understood by citizens.

The budget according to the citizens’ point of view has the following objectives:

(a) to make understandable to the citizens the information about budget figures of the Municipality and implemented by the Municipality;

(b) to awaken in the citizens and local CSOs the incentive to ask for the correct implementation of the local budget and guarantee that their voice is heard.

Our experience

First, we started through communications with all actors who were contributors in carrying out the entire process of evaluation and analysis of performance transparency of local budgets.

After collecting the necessary information from the municipal administrations, after collecting the experiences and various reports of civil society organizations, after conducting interviews with leading and implementing officials, as well as with activists and individuals of local communities, we carried out the dedicated analysis with special data for 5 municipalities of Albania, referring to the fulfillment of local financial, social and development objectives.

The initial evidence was the fact that the priorities of the municipalities were similar to each other as they had the same reference, from the year 2016-2017 (Local Development Plans), which were mostly patronaged by the central government and had not been in the years following updates with economic and social realities of the municipalities. The impact of this was that the objectives were unattainable with the available resources, therefore they created pressure for misapplication of budgets and avoidance of transparency.

Our analyzes combined data and analysis produced by specific reports, made comparisons between central government objectives and local ones, guaranteeing the correct source of data from international organizations, civil society organizations, public institutions that process and publish statistics, as well as conclusions and facts from local research centers.

From the analysis of the local budget process, we aimed to monitor the performance but also the possibility for changes according to the reaction of the citizens by analyzing the space available to them for this dialogue.

The budgeting process begins as a moment that is based on the planning of revenues and expenses from the municipality and ends with its approval by the Municipal Council.

In the last steps, before the approval by the Municipal Council, space was also left for the citizens to get to know each other through meetings and through the website of the Municipalities, but without having the right time to check fulfillment of implementation of the current budget and the orientations of the funds and their coverage by local taxes and central budget transfers.

This moment was monitored in two directions by us. First, in the meetings held by the Mayor and his staff, and second, in the publication of online documents.

From the monitored process of public consultations, we found that the voice of the citizens:

– was heard in some cases, mostly for the non-increase of tariffs and taxes, advocated also by the arguments by civil experts on the complicated economic situation, driven even more strongly by the impact of inflation and the slight increase in family income.

– little was heard about addressing requests for budget expenditures

– the investment programs were completely outside the specified deadlines, which affected additional costs, and this fact was not made transparent.

We especially noticed, after processing the survey with citizens, businesses, students and civil society activists, as well as after the questionnaires with the municipality officials, that there was little transparency and accountability for administrative expenses (allocations and reallocations during the year), for their effectiveness as well as for the terms and costs of public investments with local and central funds.

 Here is an example of the cross check of the budget allocations according to the municipality and those according to the citizens.

Priorities of the 2024 draft budget based on the Objectives of the Municipality.

The municipality has made the calculations and decided that it will finance the activities according to this order and focus:

– Continuation of road infrastructure improvement

– Improvement of the water supply and sewage system

– Further improvement of public services

– Assessing the needs of the Community through public dialogue

– Increasing transparency in the use of public funds

– Provision of services in each area of municipality services.

 Priorities for the 2024 budget from the ALTAX Survey with citizens.

… they were interested in having a greater focus on:

– Agriculture, Fisheries, and environment

– Waste management and cleanliness of the city

– Social protection and social policies

– Water supply and sewage, urbanization, greening

– Education, and health quality improvement

– against illegal constructions and more funds for fire and flood protection

Based on the analysis of the situation, our proposal was:

A dialogue/consultation calendar is needed for the actual budget of the year when it is implemented and the one that is expected to be approved using the arguments of civil expertise with the objective of having a continuous and not disconnected dialogue, as well as a relationship that affects the strengthening of trust of the public and increases the accountability of local officials.

This proposal has been partially accepted, and is being discussed with interest groups, as it is required to change the law on public consultations.

After the preparation of reports based on all the findings and arguments referring to the law “On public notification and consultation” and the law “On local finances” we have communicated not only with the general public but also with the Parliament Commissions and the Good Governance Unit of the Central Government, and with other interest groups. The core of dialog it was regarding essential changes in the dialogue between the municipality and citizens to adhere to some basic principles of good governance. This was the period of elaborating the facts and creating an environment of cooperation with an inclusive approach.

Holding consultations in the drafting budgeting process, and beyond this period serving accountability, was argued by us as the moment where civil society organizations can be the valid advocates with detailed and exhaustive analyzes that evaluate the fulfillment of the local program through the monitoring of Municipality Council decisions, but also the performance of the Municipality and mayor promises.

Meanwhile, the comments of public opinion were included by us as posts dedicated to the qualified comment of citizens through the selected expertise.

Secondly, we continued to sensitize the main stakeholders about this involvement of citizens in the budgeting process, which currently occurs at a late stage and usually does not result in any substantial changes in the budget.

Public consultations during the process of drafting the budget have neglected the steps defined by the legislation. As a result, the meetings have a low level of citizen voice participation and discussions on the feasibility of budget programs. Municipalities are obliged to listen, at least symbolically, to include the interests of citizens in the final stage of the budgeting process.

In situations where the Municipal Council and the Municipality had not yet sufficiently received the feedback of the citizens before making a decision, we as a technical advocates conveyed the comments of the citizens based on the view of expertise even though the influence was partial on one or several members of the Municipal Council, as well as on the leadership of the municipality.

For example, in recent years the demands for social services have increased, while the big part of budget in small municipalities have been delivered towards administrative and maintenance programs. Such a budgeting model has been implemented differently than the will of the citizens requires.

This situation was created both by the lack of transparency and accountability, but also by the lack of understanding of the budget indicators. But the other impact was from the deficient performance in the collection of local tax revenues, which was influenced by the weak capacities of the municipalities due to employment with political support and lack of integrity.

On the other side, based on the great dependence on the central budget, premises are also created for the corruption of the political will of the municipalities, which is little known by the citizens, since there are problems of transparency for the performance of the budget.

Starting from the discussion of the weaknesses in the administration of the current programs, a part of the political debate, as in the local elections, but also the political debates have another attention and an increase in the level of transparency, although there is much to be done in the future by as many civil and political actors as possible.

 What we emphasized in our meetings and communication with partners is the joint support on citizens’ initiative, which should require local self-government units to implement the Law, for the creation of mechanisms for citizens’ participation in the process of proposing new initiatives, in the preparation of strategic development plans and fiscal policy. 

Thirdly, we continued our communication with the comments and proposals, according to the relevance of the institutional coverage from the Ministry of Finance, from the institutions that cover good governance and dialogue with the local government, from the Parliament Commissions for legal initiatives.

On the other side, we discussed with the net of civil society and donors who are part of anti-corruption, rule of law and good governance to cooperate and draft a legal initiative in the Law on Local Finances, in the Law on Public Consultations, as well as other acts, where the influential weight is determined by law, based to requests for changes from citizens.

In closing this presentation, since the Albanian legal framework has not changed yet, together with the partners even after the completion of the our project term we are:

– advocating a process for changing the law “On public notification and consultation” and “On local finances”, where the monitoring of citizens should have the legal right for a continuous process throughout the year, for an increase in the consistency of monitoring the budget, not only during its drafting, but also during its implementation;

– spreading the model of deliberative dialogue between citizens and the municipality, as an irreplaceable process to the budget in the context of expanding the basis for public consultations, implementing participatory governance practices at the local level, encouraging public expertise participation and the development of new partnerships with CSOs based on the facts and arguments of civil technical expertise.

– continuously measuring and reporting on the level of fulfillment of the political program and strategic objectives, making transparent the performance according to the productivity of the program to minimize the risk factors for manipulation of citizens about economic performance and reforms.

CSO members, partners, students, and journalists are using the findings of the reports from ALTAX as a correct and understandable information to citizens, for advocacy and public awareness as well as to strengthen multi-stakeholder partnerships in the local community.

From all this, we aim to influence the mindset to reduce corruption by limiting its spread through the creation of proactive environment. This will happen if all of us, based on everyone harmonized contributions are involved in:

– Reporting of procedures not according to the description of the law and exposure of activities, procedures with little transparency, otherwise they may remain hidden.

– Demand for accountability for not fulfilling political promises

– Evidence and presentation of financial practices with transparency problems and non-fulfillment of budget revenues.

– Guaranteeing that the central and local governments maintain financial independence and autonomous decision-making from each other

– Accountability through consultation on the cost and benefit of decisions made by the government on our behalf, the CITIZENS.

Tirana, 26/09/2024