Crisis makes government cut spending

Top Channel has learned that the Ministry of Finances has completed the final draft that changes the state budget. The new variant decreases the general government spending from 421 billion ALL, as foreseen in the initial budget, to 405 billion ALL.

Spending will be formally cut in some sectors, but most of them more than cuts are saved money and unrealized spending during the year. The only two sectors that are directly affected are operative and maintenance spending, which have increased with 1.3 billion ALL, and other investments with internal financing sources, which will be cut with 0.9 billion ALL, compared to the plan.

The other part, of 14 billion ALL, is about spending that come from the decreased budget interest, the failure to realize investments with foreign funds and savings from the wage fund. But even with these savings, the budget crisis is not resolved.

The Ministry of Finances values that by the end of the year, the revenues collected from taxes and other sources will be 38 billion ALL less than the plan.

This means that besides cutting spending, the government will increase the debt in parallel with 22 billion ALL more than the initial plan. This brings the general budget deficit to 6% of the Gross Domestic Product, and according to the Ministry of Finances, the entire additional part will be funded by loans taken from the domestic market.

Top Channel