No growth projected in 2012 investments

TIRANA, Nov. 15 – Albania will spend 69.7 billion lek or around 5 percent of the GDP in 2012 on investments in priority sectors such as infrastructure, education, health, defense and agriculture and rural development, according to the Finance Ministry.
The figure is almost the same as the 2011 budget which is scheduled to undergo another cut following underperformance in revenues even after mid-year budget cuts.
The reviewed 2011 budget projected 73.7 billion lek of investments.
Under the 2012 budget, some 27.3 billion lek of investments or 1.97 percent of the GDP will be carried out through domestic financing while the remaining 42.3 billion lek will be performed under external financing.
Education and infrastructure have the major share in spending with 3.2 percent and 3.05 percent of the GDP respectively. The health sector will receive 2.6 percent of GDP while agriculture only 0.5 percent of the GDP, despite employing the majority 44 percent of the population and producing 20 percent of the GDP.
The southern Albania axis with the Tirane-Elbasan and the Levan-Tepelene highways along with the Fier bypass and the Kardhiq-Delvine segment will be the focus of infrastructure projects. Investments in the Arbri road linking Tirana to the northeast region of Dibra and neighboring Macedonia, the Shkodra-Hani i Hotit highway and the Shkodra bypass are also on the agenda of next year’s budget along with secondary roads all over the country. Prime Minister Berisha says the 2012 budget will also continue to support tourism, the olive and nut tree national projects as well as digital infrastructure.