The major instrument that regulates budgeting processes in the Republic of Albania is Law no. 9936, dated 26.06.2008, ‘on the Management of Budgetary System in the Republic of Albania”. This law regulates the budgetary system in Albania, which is composed of the state budget, local budgets and special funds. This law introduced for the first time the statutory requirement for local governments, as well as other general government entities, to draft and adopt medium term budget programmes. The law regulates a series of issues pertinent to local governments as well, including structure, principles of budgets; elements of intergovernmental transfers; processes of budget preparation, execution and control/inspection; etc.