Performance Based Grant System (PBGS)
Performance Based Grant System (PBGS) is a tool that annually awards municipalities based on their performance in the field of financial management, public services and local democracy. It is focused on providing incentives for municipalities to improve their performance. The grant that a partner municipality receives is linked to its performance: good performance in the field of public spaces, municipal traffic, waste, financial management and local democracy is rewarded with higher grants. Municipalities may utilise PBGS grants for works, supplies or services, depending on their priorities.
The PBGS is on-system. That means the measurement of the municipal performance is based on official data from the Ministry of Local Self Government, Ministry of Finance and the Auditor General.
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