Budget, there could be cuts
08/05/2012 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
The Democratic Party MP, Selami Xhepa, at the same time one of the best
known experts of the majority, say that the economic progress during the
first months of the year could bring the need of budget cuts.
“The developments predicted for 2012 have been made public, and they will be modest compared to the last years. The crisis effects will be stronger, and as consequence, together with the general developments, the inner demand will also be more modest. The developments in the second trimester will also be basic. As for the second half of the year, we will judge after seeing the possible budget amends, which is a tradition by now”, Xhepa declared.
Mr. Xhepa notes that fortunately, the the financing of the most important budget investments is now guaranteed, but it doesn’t exclude the possibility that there will be cuts in some less prior programs.
“I think that the most important part of the budget program in financing public investments has already been realized. I am speaking about a series of loan lines that have been ratified by the Albanian Parliament for continuing the major infrastructure projects. If we would be talking about a shrinking of public investments, or for shrinking the budget expense programs, I think that the government will see the operative expenses as a possibility, although it must be seen that the level of budget cuts during the past year was essential, making other expenses to be in the lowest historical levels”, Xhepa declared.
After the negative effects in the Eurozone countries, the austerity policy has been seriously put into question recently. Many experts say that the strong shrinking of expenses has deepened the crisis, but Mr. Xhepa stays loyal to the right conservatory philosophy.
“In the circumstances and conditions that we are facing, I don’t believe that our fiscal measures should be more generous. Albania’s debt level, at 58%, as it was declared last year, is not dangerous, but it brings the need to start a long-term lowering effort”, Xhepa declared.
Selami Xhepa says that Albania should not allow itself to increase the debt above the current level, at least not in a short-term level. In a second time, when the crisis intensity will fall, an aggressive program should be undertaken for a quick reduction of the public debt.
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