Frequent budget changes complicate public investments

2026-01-05 07:12:00, Ekonomi CNA

The planning and implementation of public investments during 2024 has shown significant risks, mainly related to the instability of budget plans and structural problems in the management of capital projects.

Data from the "Special Declaration of Fiscal Risks" by the Ministry of Finance for the year 2024 show that, although the process is based on the legal framework in force, frequent changes during the year have created uncertainty for public finances.

During 2024, budget plans for capital expenditures were revised several times through normative acts. As a result, differences between the draft budget, the initial budget and the final budget have identified risks for the state budget, leading to project delays or the creation of arrears.

Ministry of Finance data show significant deviations between the first phase of the MTBP, the initial and final budget for capital expenditures, which indicated uncertainty in the medium-term management of public investments. These fluctuations have made it difficult to predict financing and implement projects on time.

The Ministry of Finance stated that, during the year, structural problems were also identified, which have influenced the increase in project costs and the need for additional funds not foreseen in the MTBP.

The delays are related, among other things, to difficulties in fully implementing new procedures for managing public investments, lack of in-depth analysis by beneficiary institutions at the project proposal stage, as well as frequent redistribution of funds by line ministries and budgetary institutions.

Another problem remains the untimely updating of the Unique List of Projects of National Importance, including projects implemented through public-private partnerships.

According to official assessments, these factors pose direct risks to fiscal discipline and the efficiency of public spending. Institutions emphasize the need for more sustainable medium-term planning and more rigorous implementation of the legal framework, so that public investments can be implemented at more controlled costs and without delays that burden state finances.

Investment expenditures in 2024 were planned according to the methodology approved by the Decision of the Council of Ministers No. 887, dated December 27, 2022, on the management of public investments, while the funding was allocated according to standard guidelines for budget preparation, while there were differences between existing and new policies.

Priority in financing has been given to unfinished capital projects that were expected to be closed, projects still under construction but with legal commitments approved in the Medium-Term Budget Program (MTBP), as well as investments financed during the fiscal year./monitor