At the end of the first half of this year, the Ministry of Finance released only 19.6% of the capital investment fund from the budget programmed and approved in Parliament for this year. Of the 135 billion ALL allocated for investments in 2024, only 26.5 billion ALL, or 19.6%, were released from the treasury during January-June 2024.

Capital investment in the first half of this year was 14% lower than in the same period in 2023 and was also the lowest in the last eight years (since 2016). For the second half of the year, the government has 110 billion ALL available for public investments, more than 1 billion euros.

Sources in the Public Procurement Agency claimed for Monitor Magazine that the sector is facing a crisis of human resources and an extreme fear of evading work on time. Employees are reluctant to sign tenders, which may later become the subject of investigations, charging them with responsibility. This situation is penalizing the sustainable economic development of the country.

The government is a major economic operator, injecting about 744 billion lek (7.2 billion euros, 2024 budget) into the economy, with capital expenditures being the largest budget item after pension payments. The uneven allocation of investment funds has negatively affected the exchange rate. Investing less money than planned has contributed to the strengthening of the national currency alongside other factors.

Despite not realizing planned expenditures, the budget is showing a surplus. The Ministry of Finance expected a budget surplus of 21.3 billion ALL in June this year, but the latest data show the positive balance has reached 51.4 billion ALL (500 million euros), or 141% more than planned. This surplus accumulation was aided by the non-realization of public investments according to the budget plan, allowing the government to maintain a liquid account of 500 million euros.