While the capital investment budget program is the largest in history with Lek 150.5 billion (Euro 1.5 billion) this year, the 8-month realization of the pan is the lowest at least since 2020.

According to official data from the Ministry of Finance, Lek 41 billion was allocated from the budget in the form of capital investments in the first eight months. This was the lowest value in the last 5 years. Compared to the plan for the period, the realization was 15% lower.

From January to August 2024, only 27.8% of the annual public investment fund of Lek 150.5 billion was realized. As the investment program ran into difficulties this year, the government, in the two revisions it made to the 2024 budget, further increased funding for this item, cutting some health and agriculture programs that are already underfunded sectors.

In the initial 2024 budget, capital investments were planned at the amount of Lek 129.3 billion, but with the two revisions made to the budget, this item increased by Lek 21 billion, reaching Lek 150.3 billion. Additions to the investment item will go as higher costs for some road infrastructure projects.

The Transport Community earlier this year asked the Albanian government for detailed information to justify the increase in costs in projects that are already part of the TENT network and are under direct monitoring by the EU. Public investments, in a good part of the cases, are inefficient projects, not harmonized with the needs and without tangible benefits.

With the level of abuse that has recently been evidenced by the cases made public by SPAK, or other law enforcement institutions, the effective yield of the real investment compared to the amount spent on it reaches levels below 50%.

Economic experts propose the establishment of a special entity with independent experts under the Parliament, to follow the progress of public investment projects.