Planned and factual budged spending in Albania for 2012

The factual expenditures of the Government Budged in Albania for 2012 stood at 5.2 per cent lower than the planned expenditures. Final expenditures stood at 376.3 BN Albanian leks while planned expenditures were 396.9 BN Albanian Lek. Cuts in expenditures were made in large parts on local governments? expenditures but there were also savings from interest payments of the public debt.

According to government functions, apart from General Public Services, Defense and Environmental Protection, other functions showed higher expenditures then what was planned.

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Social Protection took the lion share of public spending in Albania on 2012. Pensions and social outlays took 114 BN Albanian Lek, 30 per cent of the total budged expenditures. The weight of Social Protection in government expenditures had grown continuously during last few years.

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The main reason for such growth is that the government has shown willingness to increase social spending without commensurate growth in revenues which in return limited the ability to grow general expenditures. The general expenditures for 2012 stood only 0.3 per cent higher than in 2011 while revenues were 0.7 per cent lower.

The second biggest function of expenditures were the General Public Expenditures where is included the spending for the central government, debt interest payments etc. During 2012, 20 per cent of public money had gone to this function or one every five Leks. General Public Expenditures took 75.7 BN Lek, somehow lower than in 2011.

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Economic Affairs was the next biggest function. These are the money spent for infrastructure, mining or electricity and took 44 BN lek or 12 per cent of the total budged.
In the same level were the expenditures for public education.

For Health, went one in every ten lek or 10 per cent. Total Health expenditures were 36.5 BN leks.
Environmental protection, which includes Waste management, waste water management, pollution abatement, protection of biodiversity and landscape, is the tiniest Function of Albania?s state budged. During 2012, the government planned to spend 1.1 BN lek for these issues while factual spending stood at 472m or just 0.1 per cent of the total expenditures.

Recreation, Culture and Religion was the most favored function for 2012. The government plan foresaw expenditures of 2.8 BN leks while final expenditures were 70 per cent higher or 4.7 BN leks. This function makes 1 per cent of the total expenditures.

Public Order and Safety which includes police and juridical system expenditures, penitentiary and fire protection took 21.1 BN lek for 2012, a little higher than what was assigned by the budget. These expenditures make 6 per cent of the total government expenditures.

Budget Expenditures by Function in % is shown in the graph below:

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^{1.Under “Other nonclasified expenditures” (Total) are included: (i) debt service, (ii) contigency funds for new wages and pension policies,  (iii) reserve fund, and (iv) expenditures of local governments.}

** 2.Expenditures of the local governments are not divided accordingly to the functions because such division should be decided by local councils