Budget plunges into crisis

This is the worst result ever achieved by the budget since 2002. Even by studying only the incomes collected by the Tax and Customs Office, the result is still disappointing. The numbers have increased only with 1.1%, slightly lighter than the weakest result of 2009.

After a detailed reading of the Ministry of Finances data, the fiscal incomes are technically lower, because the financial gap created in January was not recovered even in February, and the Tax and Customs offices have been unable to realize the 5.4% plan, or 191 billion ALL less in budget.

The two major reasons for this situation are the effects of the international crisis and maybe the fiscal bad management. More detailed information for the second reason show that the crisis effect on the budget is more present on February.

The income from VAT, which is the indicator of consumption in economy, has reached 0.1% in the first months of this year, compared to the same period of 2011. This increase is one of the lowest results, since 2002.

What’s the effect of this budget in economy? Recent data indicate that the capital investments from the state budget during January and February 2012 were 52.2% lower than the predictions, showing a strong declining tendency.

This is one of two worst results, since 2002. Meanwhile, the government’s expenses remain high, especially the maintenance expense, which oddly enough is on the highest level for the last 10 years, although the budget situation is the weakest for this decade. This result shows that the budget is plunging even more in the crisis created by the lack of revenues, and is not helping the economy.

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