In drafting the report, ALSAI has based its work on audits conducted in the Ministry of Finance, its subordinate units responsible for the administration of revenues and special funds, as well as on the results of audits related to the economic and financial activities of several spending units for 2024, a total of 106 audits.
The Chairman of ALSAI highlighted the problems found by the audits in the implementation of the State Budget for 2024, such as: exceeding legal deadlines in several links of the process, frequent changes to the initial budget through normative acts, changes in the priorities for selecting new projects, concluding contracts beyond the available funds, increasing tax and customs debt obligations, deficiencies in the administration of property and its provision for use by local self-government units, underfunded budget for the health sector, etc.
“Fiscal risks remain high, as exposure to public enterprises, especially energy, has increased due to outstanding and pre-agreed mutual obligations. Meanwhile, the stock of arrears and contingent litigation also remains at high levels. The stock of liabilities by the end of December 2024 results in 7.32 billion ALL, of which, central government liabilities are about 2.66 billion ALL, local government liabilities are about 3.26 billion ALL and VAT reimbursement liabilities are about 1.4 billion ALL. Actual and contingent liabilities for ECtHR decisions are reported at a value of about 18 million euros, which belongs to 10 decisions that are in excess of the 3-month deadline and risk interest payments for delayed liquidation. While the reporting of International Court of Arbitration Decisions by the end of the year 2024, for actual and contingent liabilities are presented in the amount of about 180 million euros. Regarding concession contracts/PPP with budget support, discrepancies were found in the payment plan and reporting, fragmented financing outside the respective programs, insufficient monitoring of payments for unrealized volumes and lack of annual performance reporting.”- reported the Chairman.
Mr. Shehu emphasized that the mission of ALSAI remains to guarantee the effective, economical and efficient use of public funds, strengthening public accountability and transparency in the management of state finances. “ALSAI, while exercising its constitutional and legal mandate, through recommendations continues to promote inter-institutional cooperation and good administration of the state budget, in the function of the public interest and sustainable development of the country.”
Full speech of the Chairman of ALSAI in the Committee on Economy, Employment and Finance