Kavaja is "drowned" in debt, the poor municipality increased its arrears, surpassing even Tirana

Nga A2 CNN
2025-03-24 18:25:00 | Ekonomi

Municipalities paid off old debts during the past year for investments made or services received. Data from the Ministry of Finance shows that from just over 4.8 billion lek at the end of 2023, the debts of 61 local government units fell to around 3.2 billion lek in December 2024.

This is because the government was given an additional fund of about 1.6 billion lek to pay off arrears.

"In the last 10 years, the sources of income of municipalities, both from themselves and from the State Budget, have increased, but this has not been reflected in increased care in terms of spending. Payment should be made by the municipalities and not from the state budget. The Ministry of Finance should give up paying off debts for municipalities. It is returning to culture," says expert Merita Toska.

Kavaja has the highest level of arrears with almost 23 percent of the total, leaving Tirana behind. The list is followed by small and poor municipalities such as Pogradec, Rrogozhina and Vlora. Dimali, Dibra, Cërriku, Peqini, Mati and Kamza also have a considerable stock of debts.

"It is a burden that comes and carries with it every year. Every mayor comes with the mindset: why should I pay someone else's debts? Based on the results of the Census, municipalities should better scan the needs of the communities they govern and orient their spending rationally," adds Toska.

Data from "finance" show that most of the debt stock that municipalities accumulated by the end of last year was caused by court decisions. Also, investments made but not repaid and services received but not paid for took a considerable weight in these debts. (A2 Televizion)

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