PUBLIC FINANCE MANAGEMENT SYSTEMS IN ALBANIA: GAPS, REGIONAL COMPARISONS, AND REFORM PATHWAYS

Abstract

This paper evaluates Albania’s public finance management (PFM) systems by examining governance frameworks, macroeconomic performance, and regional comparisons within the Western Balkans. The author has used the qualitative analysis of international governance standards, regulatory reports, and national economic data.  The study highlights how principles of openness, integrity, and accountability—originally articulated in the Cadbury Report—have been adapted to the public sector through the CIPFA framework. Through the economic analysis the author has identified the key strengths, including improved fiscal balances, declining public debt ratios, and resilience to external shocks, while also revealing persistent gaps in budget execution, transparency, and public investment management. Comparative insights from neighboring countries underscore both shared regional challenges and Albania’s relative progress. The paper concludes with strategic directions for strengthening PFM in Albania, emphasizing enhanced accountability mechanisms, more effective use of audits, and better alignment of fiscal policy with long-term development goals.