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Veliaj fails with investments/Tirana Municipality realizes only 25% of the plan

2024-10-07 08:51:00, Aktualitet CNA
Veliaj fails with investments/Tirana Municipality realizes only 25% of the plan
Photomontage - Erion Veliaj, in the background the Municipality of Tirana

Both the central government and the local government this year have shown great weaknesses in the implementation of the public investment program.

In the official data of the Municipality of Tirana, which were reflected in a monitoring report for the 8th month of 2024, it is noted that out of 17 billion lek (170 million euros) planned to be invested in the 8th month, only 4 were realized. 6 billion ALL (46 million euros) or 25% of the plan for the period.

The poor performance has come at a time when the Municipality has collected record revenues, as a result of the infrastructure tax. Only 9.3 billion ALL was collected from this tax for the 8-month period (double the forecast), which took 52% of the total income.

Realization from all funding sources against 8-month plans for personnel expenses is 82%, operating expenses with 57% and capital expenses with 25%.

As argued in the monitoring report, the low realization, mainly for capital expenditures, has as the main reason the revision of costs for existing facilities in the 2023 budget, as a result of the entry into force, during the month of November 2023, of VKM No. 216 dated 13.04.2023 "For the creation and operation of the integrated system for the computerization of the price manual for items of construction works".

The manual with the new prices became effective in January 2024. "Assessing the progress of the design of the projects, the requests for investments as well as based on the evaluations of the Technical Council of the General Directorate of Public Works Planning, they have proposed changes in the values ??for several objects, the addition of objects for which implementation projects have been carried out, as well as the detailing of the "Design Study" item for the economic development support program, the road network program, that of public services and the basic and preschool education program" , the monitoring report refers.

Veliaj fails with investments/Tirana Municipality realizes only 25% of the plan

The number of employees of the Municipality of Tirana for the 8th month of the year is 8,377, with an annual cost of 9.6 billion lek, or about 96 million euros.

Realization of capital investments according to the program is facing difficulties both in the central and local governments. According to data from the Ministry of Finance, in the first six months of the year, the local government had realized only 17% of the annual public investment program. Of the 41 billion ALL that is the budget of the local government for investments in 2024, only 7.2 billion ALL or 17% of the program were realized in the first six months.

Last year, the local government failed to realize public investments. The official data of the Ministry of Finance show that only 45 percent of the programmed total of 48 billion lek (460 million euro) of capital investments have been invested, a value of 26 billion lek (252 million euro). Of the 5,228 projects in total that were programmed to be financed by 2023, less than half, or only 2,546 projects, are financed.

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

On the other hand, tourism, which is serving as an incentive for the development of rural areas, cannot be connected with these communities due to the lack of basic infrastructure./ Monitor.al





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