PEFA assessment for Albania 2017
The Public Expenditure and Financial Acountability (PEFA) Performance Assessment Report for Albania was published in February 2018. The results of the assessment indicate mixed performance across the seven pillars of the 2016 PEFA framework. The indicator ratings are based on 2014-2016 data. Scores for 15 out of 31 PFM Performance indicators are in the A-B range reflecting strong performance while scores for the other 16 indicators are in the C-D range reflecting weak performance. Each pillar has its strengths and weaknesses, a brief summary of which is presented in the report with more detailed analysis provided.
The PEFA assessment aims to provide the government of Albania with an objective up-to-date diagnostic of the national public financial management (PFM) performance based on the latest PEFA methodology. The results are expected to assist the government in monitoring the implementation and updating of its 2014-2020 Public Financial Management Reform Strategy. The assessment covers the Central Government and reflects the PFM system status as of April 2017.
The assessment consists of seven pillars: budget credibility, fiscal transparency, management of assets and liabilities, policy-based fiscal strategy and budgeting, predictability and control in budget execution, accounting and reporting, external scrutiny and audit.
The present assessment is the third PFM performance assessment for Albania based on the PEFA framework. When comparing the aggregated performance at the indicator level between this assessment and the last assessment in 2011, there has been no change in performance for sixteen indicators. In the case of five indicators, there is an improvement in performance and for seven indicators, a lower score was observed. Of those seven indicators, three scores did not relate to a change in performance but to an over-optimistic interpretation of the framework in 2011.
The report was prepared by the World Bank, and the assessment was conducted in collaboration with the Ministry of Finance and Economy of Albania with the support and collaboration of the European Union. The report can be found here.