Fiscal Autonomy of Local Government Governance Flexibility and Responsiveness

In the context of processes of change that is included the Albanian state, the local governments plays an important role. Membership in various international bodies has given a special priority to this government. In the center of this paper is the analysis of fiscal decentralization of local government, specifically addressing the priorities, competences and responsibilities assigned to this government during this complex process. Local government is regarded as government closer to citizens, and for this the increasing of its competence, financial resources and an active community participation in decision making, will increase the responsibilities of power. This treatment is based on the legal framework of local government, taking a look at its changes over the years, analysing and decentralization strategy, also this process is treated even in economic framework based on different information sources. The article offers concrete conclusions based on the performance of this multilateral process and its implementation in local units of state, as the giving autonomy to local government unit turns them into selfgoverning bodies, fiscal decentralization laid to increased investment in local structure and to improve services to communities, to reduce tax evasion and increase public funding to strengthen the cooperation between central and local government.