THE CHALLENGE OF FISCAL DECENTRALIZATION AND EVALUATION OF AUTONOMY INDICATORS IN ALBANIA

Fiscal Decentralization is a key problem nowadays. Fiscal decentralization means devolution of the power and responsibilities of national (central), government towards subnational (local) governments. And this policy (decentralization) is introduced for an offset problem that has caused dissatisfaction with the current centralized system of governance. This paper tries to have a look on the decentralization process theoretically first, and then tofind indicators adaptable for Albania. The focus is on the theory of fiscal decentralization, analyzing the pros and cons of this difficult process, and an evaluation of this process in Albania. This paper also sets up some hypotheses for the revenue and the expenditure autonomy, considering its scale in relation to political factors or other factors associated.