Bode: This is why we increased the debt
23/11/2012 16:45
Albanian sign language branch is opened for the first time at the Faculty of Foreign Languages 05/10 21:12
The Minister of Finances, Ridvan Bode, presented to the Parliamentary
Commission of economy the budget of next year, where for the first time
they gave the reason why the government violated the debt limit.
“The dilemma was if we would lower the investment volume or not. The crediting level for the 9-month period was 5.8%, and with this level we cannot reach a high economic growth. We called the fiscal politics only to react, and the reaction is in public investments”, Bode declared.
Mr. Bode declared that the government is loaning money that will be used only to increase the economic growth, not for administration expenses. But the opposition is concerned.
“We think that the Albanian economy cannot hold a 895 billion ALL debt”, declared the Socialist member of this Commission, Mimi Kodheli.
“That’s our condition, the economic growth, not the level or the debt”, bode replied.
Kodheli added that the debt situation is going out of control since they risk reaching the 60% debt, and the government has not placed a new limit in the law.
“This makes us think that every argument of yours is shattered, as long as you don’t make a new debt limit”, Kodheli underlined.
The government says that official debt will be 62.2% of the national debt, but this figure could increase, since it doesn’t include the guarantee that will be given for KESH.
“You must think about 2013. The Parliament will be dissolved on May, but what will happen until the new Parliament is created? For this reason we will place a new limit, which is hypothetical”, Bode declared.
“You cannot as a compromise from the Parliamentary Commission, so that you can put outside the Parliamentary control the indicators that are foreseen by the Constitution”, declared the Socialist MP, Arben Malaj.
For the first time the Minister of Finances admitted that part of the debt will be used to pay the government’s unpaid bills. “We have no new object. We will pay the works that are being made in the current objects”, Bode declared.
“But the opposition demanded more guarantee declaring that they agree to discuss with the government experts for the debt increase only if some conditions are fulfilled.
“If this will be transparent, we would be given all the energy system debts, all debts that the government owes to companies that are not transparent and the obligations that should be paid on time”, Kodheli declared.
The next budget is expected to be 409 billion ALL, 28.3% of the National GDP.
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