The government sent to Parliament the budget 2016, one of the most
important laws since it affects families and businesses alike. But what
will it bring to citizens and the economy?
The main feature is the strong and harsh correcting of the government accounts in order to reduce the public debt. According to the draft, the government loans during the next year will be only 34.4 billion ALL, or 2.2% of the GDP. This is the lowest deficit in history.
But how will this be reached? Data show that the entire debt reducing burden will fall on spending. The government will spend less than in 2014 and 2015, 2.2% lower than this year based on the GDP.
However, these are not cuts that affect institutions or other sectors. This is because the budget has been relieved of the delayed debts. Their payment was concluded this year. The budget of 2016 will be free from delayed debts, which have taken 2.5% of the GDP in the past two years.
While it is being consolidated with spending, the government has not done the same thing with revenues. Figures say that the revenues will be bigger, but based on the GDP ratio, they will be lower. The fiscal yield will be worse while the government has not foreseen to reduce any tax. They are expecting to see the results of the fight against informality, for which they seem to have optimistic expectancies.
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