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"Municipalities have economic imbalance"/ Haxhimali: The main challenge is good budget management

2026-07-12 18:37:00, Aktualitet CNA

"Municipalities have economic imbalance"/ Haxhimali: The main

The Director of the Institute of Municipalities, Agron Haxhimali, commented today on the issue of managing medium-term and long-term budget plans by the country's municipalities.

In a television appearance, Haxhimali stated that for most municipalities, road infrastructure, educational infrastructure, and urbanization projects remain priorities.

According to Haxhimali, the main challenge for municipalities remains good budget management, both of unconditional transfers, sectoral transfers, and of the revenues they collect themselves.

"Last year we had a problem, because revenues were collected, but not spent. Each municipality has its own medium and long-term budget plan. I believe that for most municipalities, the priority remains road infrastructure, educational infrastructure and urbanization projects. What is most important for municipalities is good budget management, both unconditional transfers, sectoral transfers, and the revenues they collect themselves. From the analysis we have done as an institute, it results that for 2025, about 75% of this portfolio has been used for salaries and social security, while only about 20% has gone to capital investments. This shows that the ratio is not balanced and investments should occupy at least 30-40% of the budget to promote the development of the local economy", said Haxhimali. /CNA





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