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5-month, capital investments at the lowest level since 2016

2024-06-21 07:54:00, Ekonomi CNA
5-month, capital investments at the lowest level since 2016
Photo taken from Google

While the public investment fund in the state budget set a new record this year with around 136 billion ALL (1.3 billion euros), the actual expenses in this item during the first 5 months of 2024 were at the lowest level that from 2016.

According to official data from the Ministry of Finance, in January-May 2024 capital expenditures were at the level of 20.4 billion lek, the lowest in the last eight years. On the other hand, this year the government has approved the largest historical budget for capital investments, revising this item more with the changes made to the 2024 budget.

By the end of May, only 15% of the annual fund made available for capital investments had been spent. Actual capital expenditures were 26% lower than plan for the period and 15% lower than actual for the same period last year.

The non-realization of capital investments according to the plan, in addition to reducing the efficiency of the most productive item of the state budget, is also causing the deformation of other macroeconomic indicators. The government has turned into practice the realization of half of the investment funds in the last month of the year.

Monetary policy experts claim that this behavior of the government in capital expenditures is also causing the deformation of the exchange rate. Capital investment is a weighty instrument in injecting money into the economy. Their concentration only in the last months of the year is having a negative effect on the fall of the euro, experts claim.

Experts within public entities claim that fear among public officials of SPAK arrests has increased in the last two years.

Directors and lawyers are reluctant to sign off on funds that have been given in the past to manipulate the rules, as the investigations have shown.

International financial institutions, on the other hand, have raised concerns that the management of the public investment framework faces weaknesses in all phases, from the classification of projects to their implementation.

This year is also reinforcing the precedent of using public investment funds in the last months of the year, questioning the efficiency of their use.

The sensational cases revealed by the Special Structure Against Corruption and Organized Crime (SPAK) prove that the abuse of public funds in the area of ??investments has colossal proportions.

There are cases such as incinerators where a large part of the investment fund has been abused, as the costs of concession contracts in health have been inflated by over 50%./ Monitor





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