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High dependence on government funds and a lot of debt.
This presents the financial situation of the six municipalities that are expected to go to the local by-elections. The one that stands out is the Municipality of Vora.
In 2020, this municipality has accumulated about 700 million ALL in debt. This money is borrowed for maintenance and unpaid investments.
From other municipalities it is noticed that Durrës and Dibra have almost the same level of debt. Local finance expert Merita Toska thinks this poses a risk:
“The Municipality of Durrës has the ability and capacity to pay these obligations, while the Municipality of Dibër is very weak financially.”
Meanwhile, Lushnja and Rrogozhina are also at the same debt levels, but at lower values. Shkodra in contrast to each municipality has at the level of 0% arrears.
In terms of revenue, these six municipalities are highly dependent on government funds. The ranking is led by Dibra, which receives almost 95% of the funds from the state budget, followed by Lushnja with about 80%. After all, Rrogozhina has the highest dependence with 80% of the revenues from the central government. Then comes Shkodra with about 70% of the funds followed by the second largest municipality in the country, Durres. Vora is the municipality with the lowest dependence as it provides about 35% of the funds from its own taxes.
But how is this revenue spent? Expert Toska says that most go for administration and maintenance costs:
“Municipalities spend over 70% of their budgets on current expenditures, while only 30% of these resources go to investments. This is the average trend observed in the last decade. “
Vora and Rrogozhina have made more investments in 2021 due to the Reconstruction process, with the government allocating large sums of money for damage repairs or the construction of new housing.
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