What it is

The Performance-Based Grant is a financial instrument designed to link funding for local government units to measurable performance results. It is based on standardized indicators reflecting financial management, service delivery, transparency, and good governance at the municipal level.

Objectives

Through this mechanism, the Government aims to strengthen accountability and encourage continuous improvement in local governance. The main objective is to ensure more efficient use of public funds by directing financial support toward municipalities that demonstrate stronger performance and invest in better services for citizens.

Link: Performance-Based Grant