Bode: We are not leaving “scorched earth”

By commenting the progress of the first seven months of the year, Ridvan Bode declared that the government is not leaving scorched earth behind, but they are handing over to the Socialists a budget that has respected the limits established by the law.

“100% of what happened with the execution of public finances is in full accordance with the law. The fact that in the first seven months of an electoral year there are no deviations, no damage from the budget programmed trend, which means that the capacity for administering with a fiscal discipline is on the right level”, Bode declared.

According to official data, the Ministry of Finances has crossed the deficit limit with 4 billion ALL.

“4 billion ALL have been discharged from the deficit created by the local administration, which has realized 6.4 billion ALL of revenues in this period and has spent 17.5 billion ALL, crossing the limit with 11.8 billion ALL”, Bode declared.

But although the limit has been crossed with only 4 billion ALL, the government has consumed 80% of the annual deficit limit, since they have programmed most of the debt in the first half of the year, leaving the government less space to take debts. Bode doesn’t accept that this has been done for electoral purposes, but he says that there is an economic logic.

“This is for two purposes. One purpose is the good management and purchase of citizen’s KESH deposits for budget interest purposes, so that we can have a lower budget cost. The second is an economic reason, for this money to be invested soo, so that they can give a positive impact in the economic growth during the year and for the daxes that we collect in the budget”, Bode declared.

But even these figures do not show the entire reality. The forced cutting of investments has created another concern, that of unpaid bills by the business.

“7 billion ALL have been delayed, and when the revenues are 30 billion, 7 billion means that there is a difference of 6 to 7 days. Since some spending are more prioritary, this delay is even larger, because payments, pensions and other spending cannot wait. This makes this category have a delay of 2 weeks. In 2005 there was no global crisis and the delay was 21 days even in September”, Bode declared.

If all these obligations will be calculated, the deficit goes to 54 billion ALL, or 90% of the annual budget. This means that for the remaining five months, the government will have only 6 billion ALL for debts, or 10 times less than the debt taken by the outgoing government by the endn of July.

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