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Half of government spending goes on social protection, public service

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Albania’s 8.6 percent of the GDP expenditure on social protection is just below the 10 percent limit which risks investments in other key priority sectors such as education and health, according to the World Bank.

TIRANA, April 14 – Social protection and general public services cost the Albanian government half the annual budget back in 2013, leaving other priority sectors such as health, education and agriculture with a minority share. Finance Ministry data show government spent around 123 billion lek (Euro 862 million) on social protection and 79 billion lek (Euro 555 million) on general public services last year, which is 51 percent of the total 394 billion lek annual budget.
While social protection covers risks and needs associated with sickness/healthcare, disability, old age, unemployment, housing and social exclusion, ‘general public services’ include expenses related to executive and legislative organs, financial and fiscal affairs, external affairs, foreign economic aid, basic research and spending related to debt.
‘Economic affairs’ which covers support programmes, subsidies and public infrastructure spending in key sectors cost government 51.4 billion lek or 13 percent of its total budget.
Education and health rank the fourth and fifth most costly sectors to the Albanian government with 44 billion lek and 35 billion lek respectively in 2013.
‘Housing and community amenities’ and ‘public order and safety’ cost government 23.8 billion lek and 20 billion lek respectively in 2013, according to Finance Ministry data.
As a share to GDP, social protection accounted for 8.7 percent in 2013, up 0.1 percent compared to 2012. Economic affairs spending rose to 3.5 percent of the GDP, up from 3.3 percent in 2012. Spending on education and health accounted for 2.8 and 2.6 percent respectively in 2013, down from 3.3 percent and 2.8 percent in 2012.
According to the World Bank, Albania’s 8.6 percent of the GDP expenditure on social protection is just below the 10 percent limit which risks investments in other key priority sectors such as education and health.

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