The economic damage by sector for the years 2008-2012

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In order to increase the transparency in the use of public funds, the responsibility in their management and the highlight of all abuses occurred, among others in providing incomes and carrying costs to the budget, the SSA (Supreme State Audit) exerts its activity through the financial control, where the legality and regularity of the use of funds is audited, evaluation and other specific controls. SSA generally reports on a 10 area bases, including the main categories of revenue and expenditure of the budget, such as: taxation, customs, sale and rental of state property, procurement, compensation, payroll system, operating costs, urban planning, inventory of assets and other material shortage.

Open Data Albania has taken into consideration the total economic damage caused to the state budget during the last 5 years, in the period 2008-2012, by the main sectors.

Source : State Supreme Audit
Processing and comments: ODA

About 33.5 billion all is the total damage for the entire period under consideration, where 60 % of it belongs to the economic damage reported by SSA in the course of the last two years, 2011-2012. If we compare this total damage with some indicators of the Budget for 2012, it would result as 1.2 times more than the entire cost of the local government budget, as 51 % of the investment of the State budget, 67 % of the deficit and 1.3 times more than the domestic borrowing for 2012. This comparison helps to understand the importance of the exercised controls and the necessity to increase responsibility in the management of public funds.

If we examine all sectors one by one, it would be noticed that their weight against total damage has changed over the years. Thus, taxation, from the first ranked sector of the damage recorded for 2008-2010, is shifted in one of the sectors with the smallest damage during 2011-2012, while that coincides with the entry into force of the law no. 9920 "On Tax Procedures in the Republic of Albania", under which the SSA auditors can?t interfere to the files reviewed by the taxation inspectors, nor to the processing of the files performed by them. The economic damage in customs shows the same trend, which each year is represented by a significant improvement of the indicators. Meanwhile, characterised by a disordered behaviour appear the sectors of rental and sales of state assets, fact proving that their performance depends on the number of audited entities, and, against all expectations, the area of procurement.

Thus, from a downward trend for the first three years, which was supposed to continue to deepen in the coming years due to electronic procurement, the years 2011 and 2012 experienced a significant increase in the damage found. In analysing the total damage reported by SSA, it?s interesting to point out the ?other? category, which constitutes more than 80 % of the total damage in the last two years. They belong to the damage caused by only three companies: Albpetrol JSC, OST and AEC. The following chart provides an overview of the economic damage by sector only for 2012:

Source : State Supreme Audit
Processing and comments: ODA

What should be noted at the end of this analysis is that the growth of the economic damage found by the SSA does not necessarily represent a deterioration in the management and use of public funds in the recent years, but also a increased quality of the work of SSA and higher responsibility of this institution in performing its functions.

(In 000 ALL)

Source : State Supreme Audit
Processing and comments: ODA

  1. The data on the economic damage for the years 2008-2012 were obtained from the SSA Annual Report for each respective year.

Excel datasets : XML, N3 datasets :
    Contributer: Blerta Zilja, M.Sc.
    Translated by: Blerta Zilja, M.Sc.
    Edited by: ODA