After elections, government investments are 70 million EUR less than the plan
30/11/2017 12:00
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Recent months have brought back an old budget problem, that of not being able to realize public investments.
Data from the Ministry of Finances show that the government has realized only 45% of the investments that were programmed for this month.
According to the Ministry, public investments have realized only 4 billion ALL out of 8.9 billion.
In the first half of this year, public investments have progressed according to the plan, since governments tend to increase spending during electoral campaigns, in order to win political capital.
But after elections, the government investments slowed down, going to 7.4 billion ALL for the past 10 months or 70 million less than the plan.
Data show that the slowed down investments are those coming from the budget. Foreign-funded investments have progressed normally.
Public investments are the most productive financial element of the government budget since they grow the economy and create more jobs.
Recently, especially during 2014-2015, there have been problems to realize them according to the plan.
IMF says that these delays slow down not only the quality of investments but also the economy.
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