Crisis, revenues decrease
21/06/2012 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
The government’s finances deteriorated in May due to the reduction of
revenues from taxes. Official data from the Ministry of Finances show
that the budget revenues in the past month were officially 27.5 million
USD less than the plan, which the biggest deficit that is created during
this year.
The numbers show that the decline has happened with all taxes that are collected by the Tax Offices and Customs, warning that after a difficult year, the economy might have slowed down even more. The budget revenues for the first five months of the year are 88 millions USD lower than the plan, creating difficulties for the government to keep the budget deficit under control and the financing of expenses.
The legal deficit level of this year goes around 41 billion ALL for this year, or 3% of the national GDP. The government declared that they will preserve this level at any cost, so that they will not risk the financial stability of the country and the limit of the public debt.
But this doesn’t seem to be easy, since the deficit reached 20 billion ALL only in the first five months, almost half of the annual limit.
The initial government budget has decreased and the Ministry of Finances will present very soon the new draft with budget cuts. Besides the revenues, the budget is also burdened by an economic slowdown, which will be lower than the optimistic government prediction of 4.3%. The decline of the economic growth under this level changes all budget calculations, mainly those that are related with the deficit and the public debt, which could impose other expense amends, especially on investments, which often suffer the more cuts.
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