Government and Municipal Debts Increase, Two Main Reasons Identified

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The debts of ministries and municipalities have risen this year. By June, the total obligations of the government and local units had reached €103 million, with an additional €5.5 million in debt accumulated compared to March.

Problems in financial management—mainly in the execution of court rulings and investment-related commitments—have been the main causes behind the creation of new debts.

Official data from the Ministry of Finance show that the largest share of obligations belongs to the Ministry of Infrastructure and Energy, with nearly €19 million, followed by the Ministry of Health and other central institutions.

However, the chain of financial issues has also been reflected in municipal budgets. According to the data, by June, municipal debts had reached €37 million, with Tirana, Kavaja, Dimal, and Rrogozhina topping the list of debtors.

With the exception of Tirana and Kavaja, which have consistently faced problems in settling bills, the other municipalities joined the list of major debtors only this year.

The Ministry of Finance has pledged to ensure timely repayment of these debts. Meanwhile, other institutions, such as the State Supreme Audit and the Association of Municipalities, claim that the actual accumulated debt is even higher.

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