Winners and losers of capital investments: A local government perspective of the 2022 Law on State Budget


Today, GAP Institute published a new report Winners and losers of capital investments: A local government perspective of the 2022 Law on State Budget”.

The purpose of this paper is to examine the distribution of capital projects of ministries in municipalities and to show whether there has been any favoritism or discrimination of municipalities on a partisan basis.

Due to the continuation of previous projects, there was little room in the 2022 Budget for new projects. Over EUR 86 million or 89% of the projects of ministries in the municipalities are ongoing from previous years, while about EUR 10.3 million are new projects. Based on the 2022 Budget, same as last year, in terms of the percentage of capital investments vs. population, municipalities of Junik and Deçan/Dečani benefited the most. While the municipalities of Shtërpca/Štrpce and Graqanica/Gračanica swere among those receiving the lowest amount of investment. Additionally, it should be noted that the Municipality of Junik remains the most benefiting municipality, with EUR 122.74 of ministry capital investments per capita, while the Municipality of Graçanicë/Gračanica remains as the municipality with the lowest capital investments in these terms, namely with EUR 4.11 per capita. Overall, the discrepancy between investments by ministries towards the municipalities this year is lesser than last year.

While ministry projects in municipalities worth EUR 10.3 million, scheduled to start in 2022, will be distributed across 20 municipalities. In terms of the percentage of capital investments by population, the Municipality of Kamenicë /Kamenica ranks first with EUR 27 of investments per capita, followed by the Municipality of Viti/Vitina with EUR 15.65, and Podujevë/Podujevo with EUR 14.54. During 2022, the municipalities that will benefit most from new investments are Prizren (about EUR 1.9 million), Prishtinë/Priština (about EUR 1.5 million), Podujevë/Podujevo (about EUR 1.2 million), and Gjakovë /Djakovica (EUR 1 million).

To read the full report please click here.

Infographic here.