KLSH: Investments from foreign funds in 2023 at the lowest level in 15 years

2024-11-12 07:36:00, Aktualitet CNA

Analyzing capital expenditures according to the source of financing, it turns out that in addition to the non-realization of capital investments with internal sources, only 54% of foreign financing was realized in 2023, notes the High State Control in its analysis of the implementation of the 2023 budget.

According to KLSH, in nominal value, the realization of foreign investments last year was 4.9 billion ALL less than in 2022, the lowest value of the last 15 years.

"This shows that the line ministries have not presented an accurate planning for projects with foreign financing, and have not taken into consideration the procedures that are applied to these projects, leading to delays and non-realization in their term" refers the high auditing institution .

According to the report on the implementation of the budget prepared by the Ministry of Finance, there are no problems in the capital expenditures with foreign sources of financing, although they were not realized at a significant level, and 54% of these expenditures were carried out in the months of November-December 2023.

According to the statement of consolidated fiscal indicators prepared by the Ministry of Finance, capital expenditures (including the reconstruction fund) in 2023 were planned to be 135,146 million ALL and 119,053 million ALL or 88% were realized, with a non-realization of 16,094 million ALL, as happened in following that these expenses have not been fully realized in any budget year.

"It should be noted that, although the capital expenditures were not realized for 16,094 million ALL, 779.7 million ALL were used from the reserve fund, showing deficiencies in budget planning and in the use of the reserve fund," the HLSH said.

In 2023, capital expenditures accounted for 17.6% of general budget expenditures or 5.1% of GDP.

The lowest level of total capital expenditures was found in January, while in December 38% of them were spent.

KLSH notes that the first six months of 2023 has closed with the realization of 26% of annual capital expenditures, significantly undermining the effectiveness of the implementation of public contracts concluded during the year, with consequences in the term, cost and quality of service provision and public works , along with other fiscal implications related to the increased liquidity in the financial markets at the end of the year.

In the law "On the budget of 2023" capital expenditures were planned at 123,908 million ALL, while with the Normative Act they increased to 136,626 million ALL at a time when, as a 9-month period, the realization was only 46,358 million ALL or 70% of the plan of the period and 40% of the annual fact.

With another normative act in mid-December 2023, capital expenditures were revised down to 135,145 million ALL, changing their structure. investments with domestic financing reached 91.8 billion ALL from 86 billion ALL before, while investments with foreign financing decreased to 25 billion ALL from the planned 32.5 billion ALL.

The audit in the Ministry of Finance has shown that, in January 2024, about 25% of the total value of the annual investments were paid on account of the 2023 budget. Capital expenditures include: internal financing, foreign financing, the reconstruction fund and investments from the income of Higher Education./ Monitor Magazine