Denda Jushi
The Municipality of Tirana annually approves one of the largest budgets in the country, promising a radical transformation of infrastructure and public Services. But behind the facade of billions of dollars, a disturbing reality is hidden: the money is there, the needs of the citizens are screaming, but the budget is simply not being spent.
Internal sources confirm to ACQJ that for years the largest local institution in Albania has failed to turn plans into concrete investments, leaving millions of euros “frozen” in the accounts, while the city’s neighborhoods wait for roads, schools and water supply. For several years, the Municipality, even though it approves the budget, has not managed to spend it, raising a question: the money is there, the need is there, but why is the budget not being spent?
Every year, the Municipality of Tirana approves one of the largest local budgets in the country; the year 2025 was also full of promises for investments in infrastructure, public Services and urban development. The fact is that a good part of this budget has consistently remained unimplemented.
ACQJ approached the Municipality of Tirana for figures from recent years and, according to official information made available, the level of budget execution varies from one year to the next, but a high portion of funds remains unspent, especially in items related to capital investments.
According to official data on the implementation of the 2025 budget, the difference between planning and implementation remains visible even in numbers. The initial budget of the Municipality of Tirana was around 38.8 billion lek, while during the year it was revised to reach 57.5 billion lek. However, by the eleventh month, 30.3 billion lek had been spent, or around 53% of the revised plan.
In the breakdown by item, personnel expenses increased from 10.3 billion lek in the initial plan to 11.4 billion lek after the revision, while the actual realization reached 8.6 billion lek, about 76% of the plan, but without even reaching the initial expenditure plan. Operating expenses experienced a more significant increase, from 13.6 billion lek to 19.4 billion lek, with an realization of 12.2 billion lek, or 63% of the revised plan.
Meanwhile, capital expenditures, which include investments in infrastructure and development projects, increased from 14.8 billion lek to 26.7 billion lek after the budget review. By the end of the 11-month period, 9.4 billion lek had been realized, or about 35% of the plan. After reviewing the budgets of previous years, capital expenditures have repeatedly shown a low level of realization, remaining the most problematic item of budget implementation.
Economists explain that capital expenditures are among the most important for a public institution, as they are related to long-term investments, such as the construction or reconstruction of roads, the construction of schools and kindergartens, parks, squares and public spaces, sewerage and water supply, new public lighting, investments in public transportation, as well as the purchase of large equipment or infrastructure.
"Official explanations often suffice with 'administrative delays', avoiding a real analysis of the causes of non-implementation. This is not just a bureaucratic problem, but a consequence of paralyzed decision-making that is postponing vital projects from year to year," explains Mirela Ruko, a member of the Municipal Council, to ACQJ.
The same situation regarding the failure to implement the approved budgets also appears in previous years. However, compared to 2025, the level of budget implementation in previous years appears higher. In 2023, the Municipality of Tirana implemented about 67% of the revised plan, while in 2024 the implementation decreased to 60%. The same trend is also observed in the division by categories. Personnel expenses were implemented at 88% in 2023 and 87% in 2024, while in 2025 this level decreases to 76%. Operating expenses have gone from 80% in 2023 and 73% in 2024 to 63% in 2025.
In the three-year comparison, capital expenditures remain the item with the lowest level of implementation and with a decreasing trend. In 2023 they were implemented at 48% of the revised plan, in 2024 they fell to 38%, while for 2025 they result at around 35% for the 11-month period, placing public investments on a downward trajectory from year to year.
Local government expert Agron Haxhimali points out that planning based on "ambitious" objectives, but which do not match real capacities, creates a collection of problems for the future.
"When a project is postponed, it no longer costs the same. Inflation and changing material prices cause postponed projects to weigh more heavily on the state coffers than originally anticipated, while citizens remain hostage to the same problems," Haxhimali underlines.
On the other hand, the majority in the Council links this impasse to the lack of a central figure in the Municipality. Eridian Salianji, a member of the Council, representing the Socialist Party, argues that the performance of 2025 was penalized by political factors.
"The implementation is about 60% and this happened because the mayor was not allowed to do his job. 40% of the budget remained unimplemented solely due to Veliaj's absence, directly hindering service to citizens," he says.
ACQJ observed some of the discussions in the City Council, where it was evident that the greatest difficulties appear in capital expenditures, projects that are directly related to city life, such as neighborhood roads, urban infrastructure, schools, nurseries or public spaces.
In theory, the City Council has mechanisms to monitor budget implementation through periodic reports and the possibility of establishing a Financial Audit Committee. But according to Ruko, these instruments have not been used effectively.
“Meetings often turn into formal presentations of figures, with a complete lack of accountability for the failure of capital investments,” she testifies.
Despite the political background, the Council's monitoring mechanisms, such as the Financial Audit Committee, remain "paper hopes" that are not used.
Meanwhile, the Tirana Municipal Council has approved the 2026 budget worth around 400 million euros, without the presence of Mayor Erion Veliaj. At that meeting, the acting mayor of the municipality, Anuela Ristani, stated that in the 2026 budget, total revenues are projected at 39.2 billion lek.
"The main weight is taken by city cleaning (25%), Public Transport (11%) and Basic Education (9%)," she said.
According to her, a special focus will be devoted to infrastructure expansion, sustainable economic development, social and environmental policies, as well as building a city with European living standards.
"The Medium-Term Budget Draft 2026–2028 is a responsible document, financially sustainable and clearly oriented towards investments, public Services and social protection. It guarantees the continuity of Tirana's transformation and the improvement of the lives of our citizens," Ristani further stated.
The remaining unimplemented figures in the budget are reflected in projects that were not implemented as planned, including interventions in infrastructure, educational facilities and local public Services. The year 2026 begins with another approved budget worth around 400 million euros, while the level of its implementation during the fiscal year remains to be seen.
Data from recent years show persistent differences between planning and implementation, especially in capital expenditures. Discussions in the Municipal Council and periodic reports have focused mainly on the presentation of figures, while analysis of the factors that influence the non-implementation of investments remains part of institutional debates.
Tirana's development can no longer be penalized by administrative delays or political deadlocks. The money is there, local taxes and fees continue to grow exponentially from year to year, and the need is urgent; all that remains is for them to be spent efficiently and transparently./acqj.al
