Public Expenditure by Function Per Capita, Comparative Analyses Albania versus EU countries

Open Data Albania is researching the distribution of public money based on Functions in the State Budget by comparing per capita expenditures in EU countries and the region. This will display the focus of the Governments to the various functions and sectors, as well as government standards in spending on these functions. Government or Budget Functions aim to guarantee the provision of services such as: healthcare, education and justice, maintaining public order, security, etc.

States are conditioned on the distribution and determination of Expenditures as their prospects depend directly on the economic level, gross domestic product, informality, efficiency of public revenue collection, level of debt or budget deficit.

In the end, the comparison of public expenditures per capita based by Function indicates the level and economic standard of citizens or residents of different countries.

In EU countries, the average public expenditure per capita (by Function) is a total of 12 684 Euros. In Albania, the state spends nine times less per capita and only 1 407 Euros per capita in Budget Expenditures. So, what the state spends per capita, to provide Social Security or Pensions; Education; Health; Order and Security; Public Investments; Cost for Administrative Services up to the expenditures for functions as Culture; Entertainment or Environmental Protection in the country is nine times less than what the European Union countries offer on average.

The per capita expenditure includes costs for Social Protection; Public Health; Public Education; Debt Payment and Economic Affairs; Defense Expenditure (Army); Public Order and Safety, Housing and Facilities; Collection and Culture up to Environmental Protection or Science. The data were retrieved from EUROSTAT and refer to 2019.

Source: MFE, Eurostat (2021)
Comments and Analyses: Open Data Albania

Source: MFE, Eurostat (2021)
Comments and Analyses: Open Data Albania

For the Social Protection Sector, which guarantees a standard for people in need or groups seeking special support, including retirement or disability pensions, the EU countries average budget expenditure per capita is 5 256 Euros. While in Albania the state spends 11.56 times less or 455 Euros. Likewise, the funding that our state reserves for the Healthcare sector is 13 times lower. Education expenditure is 8 times lower in Albania compared to EU countries.

At similar levels is Kosovo, which displays a lower level of budget expenditure by function per capita.

Source: MFE, Eurostat (2021)
Comments and Analyses: Open Data Albania

Source: MFE, Eurostat (2021)
Comments and Analyses: Open Data Albania

Not only in nominal value, but also as a ratio of Expenditure by Functions ratio against Gross Domestic Product, Albania occupies an inferior position. For example, European countries spend about 46.6% of their Gross Domestic Product on public functions. Albania only 29.3%.

Source: MFE, Eurostat (2021)
Comments and Analyses: Open Data Albania

From the comparative analysis of functional expenditures in relation to the GDP in Albania and in the European Union for 2019, it can be concluded that Social Protection is the function with the highest budget support, although with a relatively high difference, for in Albania is about 9.3% of the GDP, while in the EU is about 19.3% of the GDP. Annual expenditures per capita in Albania were 455 Euros, while in the EU 5 256 euros.

The second function with the highest share of expenditures in the EU is Healthcare with 7% of the GDP, while in Albania Healthcare expenditure accounts for about 3% of the GDP, ranking as the fourth function after Common Public Services with 5% and Education with 3.3%.

Another function that shows divergence of budget support in Albania, compared to the EU, is Housing and Facilities, where expenditure in Albania is 2.2% of GDP or 105 euros per capita, while in the EU it has the lowest share among functions, with about 0.6% of GDP or 158 euros per capita.

In Albania, the function with the lowest budgetary support is Environmental Protection, where expenditures in 2019 resulted in less than 0.2% of GDP or 9 euros per capita, while in the EU the penultimate function results in support of 0.8% of GDP or 214 euros per capita, which is Housing and Facilities.

Download excel: Public Expenditure by Function Per Capita, Comparative Analyses Albania versus EU countries
Comments and Analysis: Open Data Albania
Translated by: Rezarta Caushaj