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The 2024 budget left 420 million euros unspent, later returned for debts, fines and government obligations
Central and local institutions deliberately do not spend a part of the annual budget, despite the great economic and social needs. Only in 2024, 420 million euros of unspent funds were returned to the budget. According to sources from the Ministry of Finance, this practice is carried out by political order to create a gray fund that is used to repay debts, obligations and international fines.
When central, local institutions, and public entities do not use all budget funds within the year, it is said that the funds were burned, but in reality the government returns them to the budget and uses them to solve other issues.
According to information from the Ministry of Finance, funds that remain unspent within the year are used to pay debts to the World Bank, EBRD, private banks in Albania, and for fines and obligations to companies that carry out public works with their funding.
Albania continues to have a high level of poverty, although the government and INSTAT declare economic growth and increased consumption. Large categories of the population are in immediate need of financial support, mainly salaries, pensions, the unemployed and the sick. However, even the budget funds that are planned each year are not all spent, leaving important services and investments unfulfilled.
During 2024, the state budget had 420 million euros left unspent and returned to the budget, because the central and local investment program was not implemented. Of this amount, 110 million euros were related to the failure to implement the increase in salaries and social payments, 50 million euros to the failure to implement current expenditures, while 260 million euros are related to the failure to implement investments in infrastructure, education, health, water supply and public safety.
The government used 85 million euros to repay foreign loans, 220 million euros for the 2024 year-end bonus and the 2025 spring bonus for pensioners, and 115 million euros to pay debts to private companies, arbitration fines, and obligations to the Strasbourg Court.
According to the Ministry of Finance, there are unspent funds even during 2025 and about 60 million euros are expected to be used to repay part of the domestic and foreign debt. This amount may increase. These funds do not remain unspent due to a lack of projects or a lack of needs, because the infrastructural, social and economic needs are numerous.
Sources from the Ministry of Finance claim that this practice is carried out on the orders of Prime Minister Edi Rama, according to which ministries, agencies, directorates and municipalities must leave 15 to 25 percent of the annual budget unspent. The aim is to create a gray fund with the name "unrealized within the year", which serves for the payment of debts to banks, the settlement of obligations to businesses and the payment of international fines./ Pamphlet
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