Finances in difficulties

According to the data, the Ministry of Finances has exhausted all allowed loans for this year. During January-August, the government has received 18.45 billion ALL in debts, or 99.67% of the entire annual plan. The limit of the new debt that the government can receive from the internal market during 2012 is 41.1 billion ALL, but the rest is external loan and as provided by law, it can be used only for financing foreign projects, mainly donators and development banks. The fulfillment of the legal debt imposes the government a tightened budget management for keeping this indicator under control.

The first measures came in the last month, when the government passed a decision for tightening expenses for a series of resources in the administration, starting from trainings and even phone calls.

Four months have remained until the end of the annual budget. This situation could create difficulties for the business, because the experts fear that the need to keep the internal debt within the legal limits and oblige the government to postpone the payments of companies that realize public works, a well known phenomenon in the last years.

Revenues, 121 million USD less

The initial plan of the budget revenues in the beginning of the year has failed with 12.1 billion ALL, or 121 million USD. The official data from the Ministry of Finances show that during the January-August period, the government has collected around 218.8 billion ALL from 230.9 billion that was predicted.

Numbers show that this failure comes mostly from the tax revenues, the deficit from which mounts to 10.8 billion ALL.

But since the revenues are under the plan, this doesn’t happen with the expenses. The expenses for the first eight months were 241 billion ALL, 3.3 more than the prediction.

The failure to realize the revenues and the high rate of expenses has made the budget deficit to rise at 165% of the plan for the first eight months. The government is suspending the budget review due to the undergoing privatizations. If the mysterious Albpetrol tender will succeed, the government might have other financial scenarios, not only for 2012, but even for the next electoral year.
 

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