Capital investments from the state budget reached 62.7 billion lek during the 9-month period, achieving only 35.6% of the annual plan of 176 billion lek. To meet the projected target, the government must spend another 113.4 billion lek, or about 1.2 billion euros, in the last three months of the year.
This would require a strong acceleration of public spending at the end of the year, at a time when the progress so far shows that the implementation of the plan remains a chronic problem. In the first nine months of 2026, capital investment spending averaged about 7 billion lek per month.
To realize the entire annual fund, this average must increase to about 37.8 billion lek per month during the last quarter, more than fivefold, as the remaining amount to be spent represents 64.4% of the annual investment plan. The low realization of capital investments is due to multiple factors, from delays in the preparation and approval of projects, public procurement procedures and complaints, to problems with expropriations and the capacities of institutions responsible for the implementation of contracts. Meanwhile, funds are often foreseen in the state budget before projects have completed preparatory procedures.
But as the efficiency of the administration does not match the investment fund that is increasing from year to year, the risk of non-fulfillment is not limited to the budget plan. The concentration of contracts, works and payments in a short period can create pressure on the public administration, implementing companies and quality control mechanisms. Experience has shown that almost over 40 percent of the investment budget is allocated in December, exerting strong pressure on prices and inflation.
From a fiscal point of view, the failure to implement investments is affecting the interpretation of the budget performance and may change once again in relation to the initial plan. Total expenditures may result lower than forecast, with consequences in sectors that depend on public contracts. But on the other hand, if the acceleration of projects continues with high payments in recent months, there is a risk of abuse and inefficiency, as the Supreme State Audit Office has also pointed out in its reports on budget implementation.
To fully achieve the objective, an extraordinary acceleration of spending is needed, but also an assessment of the real capacities to complete projects within the deadlines. Public investments this year continue to be exposed to an implementation model where the last months of the year bear the main weight of implementation. This budgeting method is increasing uncertainty about the fulfillment of objectives and the quality of results. The failure to realize investments comes at a time when our country has the largest gap in infrastructure, roads, regular water supply, health, etc./Monitor
