Analysis of Public Finance Management and Expenditures in Albania (2014–2024)

The report titled “The Approach to Public Finances and the Consequences of the Politicization of Expenditures” offers an in-depth analysis of public finances in Albania during the 2014–2024 period, focusing on budget expenditures and revenues, fiscal policy, and the impact of politicized spending on economic development.

Its objective is to highlight the main spending trends and the management of financial resources across various sectors, assessing the influence of fiscal policies and public administration on economic stability and sustainable growth.

Over this ten-year span, the study examines the growth of current expenditures, the financing of capital investments, and the burden of debt interest within the budget. Special attention is given to the distribution of expenditures for personnel, social insurance, health insurance, and special funds, providing a clear picture of how financial resources have been allocated in alignment with state priorities.

A key aspect of the analysis is the impact of politicization in spending and budgetary decision-making, which has often affected the efficiency and fairness in the allocation of resources.

Fiscal policies and public expenditures have been used to support projects aimed at infrastructure development and the improvement of living conditions. However, these resources have also been distributed in ways influenced by political factors, potentially diverting necessary funds away from long-term sustainable development.

This analysis seeks to offer recommendations for improving the management of public finances, ensuring greater transparency, and addressing key challenges related to revenue collection and the optimization of expenditures.

The consequences of these imbalances are significant and may pose risks to future economic stability and sustainable growth.

Ultimately, this report serves as a valuable tool for policymakers, experts, and civil society organizations aiming to promote better management of public resources and ensure sustainable economic and social development in Albania.