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Government freezes 100m euros in 28 investment projects, from water supply to roads and civil emergencies
The government has frozen investment funds for about 28 projects worth 12 billion lek (100 million euros) in the 2022 budget in order to prevent a possible deterioration of fiscal stability in the new conditions produced by the war in Ukraine.
According to data from the treasury branch in the Ministry of Finance, funds have been frozen for water reform, waste management, civil emergencies and road, sea and rail transport, youth funds and many other projects.
Funds in the "frozen" status constitute about 10 percent of the total public investment fund of this year defined in normative act no.
Water supply infrastructure is most affected. The “Water Reform” project was foreseen to be financed with about ALL 4.3 billion, the second project with the highest value of financing in all other investment projects is frozen.
The detailed list of investments by the Ministry of Finance shows that funds in the amount of 1.7 billion have been "frozen" in road transport.
Civil emergencies seem to be the institution most hit by the freeze on funds. Although in recent years, earthquakes, floods and fires have increased greatly due to climate change and civil emergencies need to be further strengthened, the government has frozen about 730 million ALL from this year's budget for emergencies.
More than 1 billion ALL or about 9 million Euros for the urban waste management program are "frozen" and also 100 million ALL for youth support.
The largest investment project in this budget year is the Llogara tunnel with a funding of ALL 5.5 billion, for which funding continues normally.
The second largest project is the water reform worth 4.3 billion ALL, for which funds have been frozen. The third largest project in terms of budget financing is the contract for financing the Arbri road concession with ALL 2.9 billion and the fourth largest project is the rural roads program with ALL 2.9 billion.
So far, the Ministry of Finance has changed the 2022 budget three times with a normative act, while it is preparing a fourth act of changes that is expected to be published these days, where there will be reallocation of expenditures.
During the first quarter, budget revenues were about 300 million euros higher than last year, but the risks have increased due to rising debt costs and weakening of the economy from the high price crisis./Monitor