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The report is published, the pandemic costs 2.2 billion ALL to the local government
Written by SOT.COM.AL 7 Dhjetor 2020
Significantly the effect of COVID-19 and the closure of the economy, the decline in consumption and the measures taken, including have significantly affected the reduction of taxes on all local taxes that this 9 months have fallen by 14% and then property taxes by about 7% compared to a year ago.
Municipal revenues show that the key item in revenues collected from about "Infrastructure Impact Tax" in about 36.8% of the total (6 billion ALL) and then occupies "Building Tax" with about 18% of the total (2.9 billion lekë).
The largest weight in the collection of revenues from local government has the Municipality of Tirana, which has collected 10.9 billion ALL during the first 9 months of 2020. For the Municipality of Tirana, the main item of revenue is "Infrastructure Impact Tax" which captures the value of 4.8 billion ALL or almost ½ of total revenues for the Municipality of Tirana and almost 26% of total revenues for all municipalities.
The report organizes the 61 municipalities of Albania based on the population, dividing them into three groups. According to him, the municipalities with over 100 thousand inhabitants (11 of them together with Tirana) have realized 83% of the revenues and have the main burden. Meanwhile, 37 municipalities with a population of less than 50 thousand inhabitants seem to have collected for the 9 months of 2020 almost 1.8 billion ALL (or 24.8% of total local government revenues).
On the expenditure side, municipalities have fulfilled about 77% of the annual plan and are only 2% less than a year ago. This shows that the local government is not affected so much in spending on its programs. However, it seems that almost 40% of the expenditures are for salaries to staff and investments account for 9.4% of total local government expenditures. A ratio that is 24% lower than 9 months a year ago.
For this year, the structure of expenditures has changed, increasing the share of expenditures from central budget transfers (57%) and decreasing the share of expenditures from own revenues. The items that were most affected by the local government for the first 9 months of 2020 were environmental protection, economic issues and order and security. They received 28% more of the budget than a year ago for the same period. This has affected the decline of "General Public Services".
The report for 9 months 2020 is an indicator of how the pandemic has affected the local government budget. Quantitative data speak of a blow to the revenue item although not at the central government level. Municipalities seem to have tried to adjust their spending to prevent the pandemic with their own means./Monitor