Budget of Crisis shrinks wages and pensions

29/06/2011 08:05

Prime Minister Berisha must decide for the fate of the Albanians’ finances. It is the last week of June, which divides the two halves of the year.
In the next half, the Albanian economy will benefit less incomes and

Beyond optimism, the decision is very difficult this time, because on the table of the Prime Minister was sent the final version of the Ministry of Finances, which proposes expense cuts of 18 billion ALL. These cuts affect the most important economic sectors, starting with public investments. There are about 9.2 billion ALL less for public investments, or 12% less than the initial plan, a measure that damages mostly the construction business.

The anti-crisis plan, according to “Shqip” newspaper, aims cuts even in the sector of wages and pensions. Although the Prime Minister declared two days earlier that he would not stop the policy of increasing social expenses, despite the fact that it wasn’t approved by IMF, facts show otherwise.

“Shqip” newspaper has been able to secure the final version of the new budget that was reviewed by the Ministry of Finances, which is awaiting the signature of the Prime Minister. The crisis of the state budget has cut to 30% the fund that was assigned for raising wages and pensions.
“900 million ALL were extracted from these categories, remaining with only 2.5 billion ALL for 650,000 pensioners and state employees. In these conditions, the government is obliged to raise wages and pensions not more than the level of inflation, at least 4%, and not 10% as promised. The crisis in the budget affects also the fund for compensating former land owners, energy bills for pensioners and social assistance.

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