Cani: Public debt more than 67%

Speaking in a joint conference for the media and International Monetary Fund representatives, Cani underlined that the financial situation is critical. However, he underlined that although the situation is bad, it is not hopeless.

Cani underlined that the budget revenue level for the first eight months of 2013 is 7.2% lower than what the plan had predicted. The revenues for this year are expected to be 23.7%, and this is the worst performance since 1997.

“We need 24 billion ALL of additional debt. The deficit will reach 6% of the Gross Domestic Product, from 3.5% that it had been foreseen. The only solution that the outgoing government left to us, is increasing the deficit and debt”, Cani declared.

The debt which is expected to reach 67% of the Gross Domestic Product is the hidden debt, the unpaid bills to private businesses. If this is added to the public debt, it might reach 71% of the Gross Domestic Product.

“Our long-term goal to reach the 60% debt looks difficult, but not impossible. 9 billion ALL are the unpaid bills from the Treasury. The VAT that has not been reimbursed reaches 6 billion ALL as certified, and 7 billion ALL in the process. We have 10 billion ALL in of prepaid income tax that has not been returned to the business and the tax administration. The economic growth is not 3.1% this year, as it was predicted, but 1.7% to 1.9%”, Cani declared.

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