Shqipëria Posted on 2025-04-23 11:13:00

310 euros for every resident in Albania - Municipal expenses per capita increase, investments decrease

From Elisabeta Dosku

310 euros for every resident in Albania - Municipal expenses per capita

Municipal expenditures per capita have increased significantly from year to year. Official data from the Ministry of Finance show that from 10,638 lek spent in 2013, the increase has been gradual, reaching 30,973 lek or about 310 euros in 2024.

The increase compared to the previous year, where expenses were recorded at 28,656 lek per capita, results in an increase of 2,317 lek or about 24 euros.

Of these, on average half of these expenditures per capita are financed from municipalities' own revenues and the other half mainly from unconditional and sectoral transfers.

In total, during the past year, municipalities have spent a budget of 74.4 billion lek, with an increase of 5.6 billion lek compared to the previous year.

Overall, the structure of municipal expenditures in Albania is dictated by the functions of local government units and their respective funding sources. The sector with the highest share in local expenditures from unconditional sources in 2024 is economic affairs, which includes, among others, agriculture, forest management, irrigation and drainage, tourism and transport, followed by the general public services sector and education. The share of these local government expenditures by function clearly shows the importance of these expenditures in relation to the public services that local self-government units provide.

Data on local expenditures by economic structure show that the largest share is occupied by expenses for salaries and personnel insurance, at 45.7 percent, an indicator that has increased by 2.6% compared to the previous year. Next are operating expenses, mainly purchases and maintenance, at 34.8%, with an increase of 1.9%. While investment expenses occupy only 19.5% of the total budget throughout 2024 and this figure has decreased by 4.5% compared to the previous year.  

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