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Budget arrears reach 200 million euros in 9 months/ 57% increase within the year, exceeding the target

2023-11-17 07:30:00, Ekonomi CNA
Budget arrears reach 200 million euros in 9 months/ 57% increase within the
Illustrative photo

While the state budget has had a good fiscal situation this year with increased receipts which brought the need for a supplementary budget, it has also accumulated a significant amount as unpaid obligations to businesses with which the government has concluded work contracts. and services.

According to data from the Ministry of Finance, arrears increased to 20.4 billion ALL at the end of September, this figure is 57% higher than the beginning of the year, where this indicator was 13 billion ALL.

The finance ministry aims to meet a target whereby the stock of annual arrears does not exceed 2% of total expenditure in at least two of the last three fiscal years.

The object of general government arrears as a percentage of total expenditures for 2023 is set equal to or less than 2.4% (full implementation) or 2.8% (partial implementation).

For 9 months, the level of obligations was 2.85%, greater than the established objective, but the Ministry of Finance plans to pay off a part of these obligations in the remaining months of the year in order to reach the ferry less than 2.5% .

As can be seen from the history of the obligations, the accumulations are high in the second 6 months, as the companies perform works beyond the forecasts in the budget. Although a series of guidelines and regulations avoid the accumulation of obligations, they are becoming an unavoidable item in the budget.

The Ministry of Finance has made it a practice to pay off a part of these at the end of the year, but generally a stock of 100 million euros remains.

Of the total arrears until September 2023, the central government owns 12.27 billion ALL, of which investments account for the largest share of the liability stock, about 64.6%, and Judicial Decisions account for about 26.8%.

Total arrears of the local government about 7.62 billion ALL, of which investments account for the largest share of the liability stock with about 50.1%, other arrears with about 26.9%, services with about 10.1%, judicial decisions about 7.3 %, goods with about 3.1%.

Starting from December 2020, the monitoring and reporting of arrears, which was previously carried out on a quarterly basis through the institutions' written reporting, is now automatically generated by the Government's Financial IT System./ Monitor Magazine

Budget arrears reach 200 million euros in 9 months/ 57% increase within the





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