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The local government shrinks capital investments for 2024, increases them for personnel

Politiko 2024-09-04 08:24:24

The local government shrinks capital investments for 2024, increases them for

The non-realization of public investment programs is turning into a "pandemic".

Official data show that even the local government had very low rates of realization of investment funds in the first 5 months, although the needs of local communities are great, especially in infrastructure.

The data from the Ministry of Finance show that during the 5th month of 2024 investment expenses were realized in the amount of 4.2 billion ALL with a decrease of 16 percent compared to the same level of 2023, as it can be seen that the expenses for personnel increased further.

Official data show that during January-May 2024 personnel expenses accounted for 52.6% of total local government expenses from 48.8% a year ago. They were realized in the amount of 13.2 billion ALL or about 14% more than the same period of 2023 as a result of the salary increase for local administration employees.

Capital expenditures are a very important item in the local budget, as they directly and indirectly bring economic development and therefore affect the well-being of citizens. However, this item has a small weight in the total expenses of the local government, compared to the personnel and operational expenses. Municipalities take more funds for operating expenses than in the investment item, which they fail to realize due to weak capacities for projects.

From the analysis of the data according to the economic accounts, it can be seen that all items of current expenses have increased this year. For 5M 2024, they result in 6.4 billion ALL from 6.2 billion in the 5th month of 2013. Operating expenses in this period constitute about 25.6% of the total local expenses.

Local government expenditures are an important indicator of the public finance management process at the local level. Over the years, these expenses have shown a slight increase and this is a consequence of the increase in the level of services and functions that the local government offers to citizens.

During the year 2023, the data on municipal investments show that, out of the programmed total of 48 billion alleks (460 million euros), only 45% of them were invested, a value of 26 billion alleks (252 million euros). Of the 5228 projects in total programmed to be financed in 2023, less than half, or only 2546 projects, are financed.

At a time when municipal funds remain unrealized, entire rural regions across the country are being depopulated, as a result of the lack of infrastructure, roads, health and schools./Monitor

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