Budget expenditures represent investments and expenditures incurred by public institutions using revenues. The difference between expenditures and revenue makes the budget deficit. In the case of Albania, budget expenditures for 2009 were about 379 billion Albanian Lek (ALL) or 33% of GDP.

Compared with the region countries, Albania is ranked as follows:

Source: FMN
Comments and Analysis: ODA

As can be seen from the graph, Albania’s expenditures to GDP are the lowest of the region. While ranked in first place: Greece (50.4%) followed by Bosnia and Herzegovina (50%), Montenegro (47%), Serbia (44%), Croatia (42%), Turkey (37%), Macedonia (33%) and Kosovo (31%).

By doing an analysis it is noted that the country with the greatest reduction of budget expenditures over the past decade is Bosnia and Herzegovina, while the country with the largest increase is Kosovo.

Budget expenditures of a country are mainly financed by revenues and the debt or privatization of public objects. Overall revenues and expenditures should change proportionally, in order to avoid high debt levels.