Municipal finances during the pandemic – The government “compensated” the decline in taxes and fees. Staff costs increased, investment slowed

Municipalities collected 5.3% less revenue from local taxes and fees during 2020, but total revenues increased by 0.2% due to transfers from the government, making local government budgets unaffected by the earthquake or pandemic. COVID-19. The data belong to the report “Local Public Finances”, conducted by Co-Plan.

According to the study, if we do not include the Municipality of Tirana, then the decline in revenues from its own resources in the 60 municipalities of the country is estimated at 12.2%. Meanwhile, the rate of decline is highest in the 11 municipalities affected by the earthquake, where Lezha leads with 57.3%. Meanwhile, in terms of expenditures or increased by 5.6%, but mainly they went to staff, while investments were restrained.

The Co-Plan report also provides data on the degree of financial difficulty, where it turns out that the Municipality of Vora has exceeded the insolvency limit, reaching values ​​of 200% from 130% which is the reference value. Meanwhile, the Municipality of Kavaja and Roskovec result in serious financial difficulties.

SCAN

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