Malaj: Budget in crisis

“In all other crisis, the measures taken by governments are to reduce expenses or control any bad managing of these expenses. When a government is advised to raise taxes, this is a clear proof that the situation is much worse”, Malaj declared.

Mr.Malaj, one of the strongest critical voices in economy, stands by the theory that the actual system of keeping the flat tax at 10% does not guarantee financial stability, and it also produces crisis at public finances.

“I think that the government has admitted that the fiscal revolution of the lowest taxes in the world failed by not taking responsibility for making a useless reform to the tax structure even to the levels of budget cuts. This government, with its populism and its 16% debt level, which is not only very high, bug is still tending to increase, is sending our country to a critical point,” Malaj declared.

Due to the lack of financial sources, the government was obliged to cut expenses for the third consequent year.

“20 billion ALL are almost 95% of all expenses that the Albanian government pays for the public health system, which in total, with their budget, is almost 27 billion ALL, or 25% of the inner source investments that are being realized in the Albanian economy. Further deterioration of public expenses will add budget cuts”, Malaj added.

Some experts fear that the consequent cuts that the government is making to budget expenses might put the country in a vicious circle, with a similar situation to the Greek neighbors, where the economic decline is obliging the government to cut expenses. Budget cuts also shrink the economic growth.

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