2018 draft budget, where and how will the treasury’s money be spent

A total of 496.6 billion lek… All of them destined to be spent for the next 365 days. But where and how will they be spent? It’s in the 2018 Draft Budget that we find details of how each “penny” will be spent. According to this document, spending on entitlements will account for the biggest part of these expenditures, with 148.6 billion lek. Entitlements include pension schemes and social allowance, on which 7.2 billion lek more will be spent next year. Meanwhile, the government has allocated a 100 billion lek contingency fund, although the sector that they will be spent on has not yet been determined.

Then we have healthcare taking 48.8 billion lek of the state budget’s money, 3.5 billion lek more than last year and an 18.8% increase of salaries for its employees. Economic affairs come next on the list, occupying a very important spot in the budget program, with 45 billion lek of expenses, among which, 10 billion lek more than last year were allocated for investments. But even education has not been left behind in this list of sectors, where the government is planning to spend money during 2018. Funds allocated for this sector are 41 billion lek. The list concludes with general public expenses amounting to 36.4 billion lek, defence with 11.6 billion lek, public safety and order with 28.8 billion lek, etc, and in the end, we find sectors, which, next year will require less money from the state’s budget, such as preservation of the environment with up to 1.2 billion lek or leisure, culture and religious issues with up to 3.4 billion lek.

INFRASTRUCTURE

10 road segments will be completed next year

Next year, the draft-budget will also allocate funds for the completion of 10 road segments. So, the segments that will be completed are: lot 2 of the Kukes-Morina highway and the road segment linking Fushe Kruja to Thumana. Another segment expected to be completed in 2018 is lot 10 of the Plepa-Kavaja-Rrogozhine bypass. Other segments include Elbasan-Banje or Kelcyre-Permet. The Koder-Kamez-Tapize segment will undergo reconstruction, while the bypass of Fier, bypass of Vlora or road segments linking Tirana to Elbasan and Qukes-Qafe Plloce will undergo maintenance works.

CONCESSIONS

8 big contracts in the form of Public-Private Partnership

Six contracts for the transport sector, one in the health sector and one in education will be entered next year by the state as concessionary contracts also known as a Public-Private Partnership. With a total value of 156.7 billion lek, their application is expected to last several years. As far as the education system is concerned, 6.4 billion lek will be spent in the form of PPP for the construction of schools in the capital. This partnership will also include the concessionary agreement for the hospital of Fier or the construction of road segments Tirana-Thumana-Vora, Kardhiq-Delvina, Kashara-Rrogozhina, Milot-Malldren, etc.

The key reforms of 2018 which will be supported by the budget

 There are several reforms which the Albanian government considers as key reforms. These reforms will be supported through budget funds next year. One of these reforms is the judicial reform, which includes the creation of an inspectorate that will investigate disciplinary violations made by judges and prosecutors, the creation of Supreme Council of Prosecutors, the functioning of the Supreme Council of Judges, the creation of a specialized anti-corruption national structure and the construction of new premises of the Magistrate School. Another important reform is the administrative-territorial reform, for which the government explains that “the 2018 budget will be accompanied by a model of changes in the way local government is funded and managed”. Furthermore, the reform in the water sector is considered to be another important reform by the government. In the next year’s budget, the government is planning to sign 200 thousand new water supply contracts and the extension of the water supply hours from 12 hours a day to 14 hours a day.

In 2018, public administration will have 81 thousand and 660 employees

Next year, Albanian public administration will have 81 thousand and 660 employees. This is also confirmed in the official document of the 2018 Draft Budget, according to which, the ministry of Education, Sport and Youth will have the largest number of employees with 31.004 employees working in all institutions that depend on this ministry. This list is followed by the Ministry of Interior with 14.106 employees, but also by the Ministry of Defence, which next year will have 8.973 employees working for the institutions that depend on this ministry. Also, institutions that relate to the justice system will also have a significant number of employees, 2.452. This significant number is also related to the application of the judicial reform, which will be associated with the creation of a number of institutions. On the other hand, as far as the key institutions in the country are concerned, they will have the following number of employees: Presidency 86, Parliament 405 and Council of Ministers 150.