The government "blocks" spending/ The budget enters December with a surplus of 500 million euros

2025-12-31 07:27:39, Ekonomi CNA

The government "blocks" spending/ The budget enters December with a

At the end of November 2025, the budget balance (the difference between revenues and expenditures) was in surplus at 49.1 billion lek, about 500 million euros, according to data from the Ministry of Finance.

This amount was higher than the plan in the initial budget which predicted a deficit of -23.1 billion lek or -230 million euros.

Instead of the surplus being reduced in accordance with the budget law, it was expanded beyond November, deviating not only from the plan, but also becoming a cause for financial mismanagement.

The Ministry of Finance expects to spend in December the entire budget surplus of 49 billion lek created in the 11 months of the year and another 61 billion lek in the form of the budget deficit programmed to be spent in December, a total of about 1.2 billion euros.

The concentration of budget expenditures in December is, among other things, an indicator of mismanagement of the budget cycle, as the Supreme State Audit Office has also noted in its special budget audits.

Instead of spending following a steady pace throughout the year, the budget creates a cascading effect throughout the year that is released hastily at the end, creating a wave of spending that is unrelated to the real needs of the economy at that moment.

Monthly data from the Ministry of Finance shows that the budget surplus has been steadily improving throughout the year. 2025 started with a surplus of around 18 billion lek in January, while this level gradually increased from month to month. In the first quarter, the surplus almost doubled, reaching over 33 billion lek in March, while in April and May the expansion continues at a rapid pace.

During the summer, the surplus was over 30–40 billion lek, reflecting increased revenues and weakness in expenditures.

In cumulative terms, the deficit is expected to be -68 billion lek at the end of December from +49 billion lek in November.

At the end of the year, budget payments accelerate, such as public investments, debt liquidations, subsidies or expenses carried over from previous months. At the same time, December is usually the month when final budget adjustments are made and financial commitments are closed.

From a fiscal perspective, such a development creates pressure on public finances at the end of the year and implies a lack of seriousness in the remaining months of the year. For experts and the Supreme Audit Office, this is not a healthy practice.

In most countries with consolidated fiscal administration, expenditures are distributed relatively evenly.

The concentration of spending in December is largely related to chronic delays in planning and procurement, especially for public investments. Projects that were supposed to start in the spring or summer are postponed for administrative, bureaucratic or political reasons, and when the fiscal year closes, institutions face pressure not to lose the allocated funds. Payments are made because the deadline is running out.

The main consequence is a decline in the quality of public spending. Contracts are concluded in a hurry, and oversight is weakened.

In this climate, the risk of suboptimal decisions and misuse of funds increases significantly.

From a macroeconomic perspective, such a large injection of funds at the end of the year increases local inflationary pressures, especially in sectors such as construction and services, where capacities are limited. Businesses are unable to plan normally, while the economy receives strong impulses that do not translate into sustainable growth. /Monitor