Public spending increased by 15% in the first half of 2017, typical for an election year

The rise in public spending in the period prior to the elections has been a characteristic even this year.

According to data from the Ministry of Finance, government expenditures amounted to All 209 billion for the first half of the year.

Compared to the same period of the previous year, expenditures have increased by All 28 billion or over 15%.

Statistics show that the growth in spending focused particularly on public investment and the transfer to local governments, which indirectly served to boost investment in infrastructure and urban planning prior to the elections.

Government capital expenditures for the first six months of the year reached ALL 26.4 billion, up 56% compared to the same period a year earlier.

Meanwhile, local government transfers amounted to nearly ALL 24 billion, 55% more compared to the first six months of 2016.

It is believed that a large part of the increase in local government spending is related to the costly project for the reconstruction of Skanderbeg Square in Tirana.

A significant impact has also been reported by the increased spending on social and health insurance funds, by ALL 7 billion compared to the previous year.

In order to control expenditure in the election years, the law on the budget was amended in the last government mandate, stipulating that the government is forbidden to spend more than 55% of the annual deficit in the first half of the year.

According to the data so far, this stipulation has been observed and by the end of June, the government has spent about 46% of the deficit envisaged in the annual budget.

However, the electoral year has significantly altered the distribution of public spending during the year.

In non-election years, it is typical that expenditures and especially public investments are slow in the first half of the year and grow in the last months of the budget year.

On the contrary, in the electoral years, governments do not waste their time and spending moves fast in the first half of the year.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.