The government approved on July 29, 2022, the Normative Act no. 12, for the revision of the 2022 Budget Plan. The latter is the second Normative Act introducing amendments in the Budget. Earlier, through Normative Act no.3, the Budget was amended in March 2022. Budgetary expenses in the initial Plan amounted in 637.69 billion ALL, but in March the government planned an increase with 10 billion ALL and now, with the July NA, another 13 billion ALL was added. The expenses have risen as well and are now 3.6% above the initial plan, being predicted in the amount of 660.69 billion ALL in the recent Normative Act.
Comments and Analyses: Open Data Albania
Table: 2022 State Budget Expenditures, Supplementions based on the Normative Act No. 12th revisions, July 29, 2022 (in 000 000 Lek)
Comments and Analyses: Open Data Albania
Overall, expenditures have increased, but only in regards to a few select budget programs. The government has planned a smaller budget and reduced expenses for several other programs, among them the four basic public health programs.
Compared to the last Budget Plan, the e-Government or the National Agency of the Information Society has marked an increase in expenditure of 2.2 billion additional ALL or 37% more than previously. Both programs are, apparently, in need of emergency intervention after the escalated risk of hacking, and the need for better security for e-Albania data and services.
Development Projects or the Albanian Development Fund were subject to a 1.9 billion ALL budget extention, or 16% budget increase.
The Ministry of Finance and Economy budget for the “Execution of Miscellaneous Payments” Program also increased by 1.82 billion ALL. The latter is due to the additional costs incurred in the Budget, after the Government’s decision to financially compensate the rise in the prices of the construction materials, based on the stipulations in the contracts for public works, as a result of the special situation created in the market during 2022. To this end, the Government approved Normative Act No. 10 in May and estimated applications for Financial Compensation from public contractors were expected to be accompanied by additional Budgetary expenditures throughout 2022.
Housing is another budget program with additional expenditures of 1.72 billion ALL. Likewise, Road Transport has a budget supplement, as does Water Supply and Sewerage. All above mentioned programs are currently under the responsibility of the Ministry of Infrastructure and Energy.
Basic education, including pre-school, underwent an increase in expenditure by 1 billion ALL.
Comments and Analyses: Open Data Albania
Comments and Analyses: Open Data Albania
The programs that have suffered a reduction in the Budget Expenditure Plan are Social Security and all four programs of the Public Health Sector.
The Health Insurance Scheme has improved the income plan after the Government’s decision to increase the minimum wage, resulting in an increase in the amount of social contributions paid by the employer and the employee. That is why the enlarged funds were saved in the institution’s budget, reducing the Expenditure item by 4.78 billion ALL.
Health, on the other hand, has undergone a contraction of about 2 billion ALL, with each program suffering its own diminuition, namely Public Health Services by 14%, Primary Care Services by 10%, Secondary Care Service by 1% and the National Emergency Service with a more modest shrinkage.
In addition to health, INSTAT suffered a decline by 42% of the previous expenses planned for the Statistical Program. Such contraction calls into question the Census process that is expected to be held later this year.
Comments and Analyses: Open Data Albania
Comments and Analyses: Open Data Albania
The overall expenditures for budgetary institutions have increased by about 3.1 billion ALL or an additional 1% compared to previous expenses. If we examine the institutions (that is, not the programs), there has been a portfolio expantion for budget expenditures for the Ministry of Infrastructure and Energy; National Agency of the Information Society; The Albanian Development Fund and the Ministry of Education, Youth and Sports.
Table: Institutions with significant budget increase ( July NA vs March NA 2022), in 000 ALL and %
Comments and Analyses: Open Data Albania
Whereas, institutions experiencing a shrinking in the expenditure portfolio are the Institute of Statistics, the Ministry of Finance and Economy and the Ministry of Health and Social Protection.
Table: Institutions with significant budget reduction ( July NA vs March NA 2022), in 000 ALL and %
Comments and Analyses: Open Data Albania
Again, this is the second Normative Act introducing revisions to the initial State Budget plan, whose implementation began on January 1, 2022. Governments change budget plans several times throughout the year, influenced mainly by the performance in collecting revenues, as well as expenses, reevaluation of needs based on emergencies, change in priorities and flexibility in the budget implementation.
Download excel: Revision in the 2022’s State Budget: expenditure increase or reduction, based on the programsComments and Analyses: Open Data Albania
Contributed by: Blerina Gjaci
Translated by: Razarta Cushaj