Government borrows for elections

According to the Ministry of Finances, the government has invested more than 115 million USD in economy only for April. This number is almost equal to the investments of the previous three months altogether.

But how was managed this sudden spending increase. Numbers show that most has come from debts.

Data showed that the government borrowed 37 million USD more than the plan only in the first four months of this year.

Most of the loans were taken from the domestic market, going up to 150% above the plan.

But besides the increased debt there is another source, which has enabled the government to increase the spending before the elections, such as the Bank of Albania profits and non-tax incomes that are collected by public institutions.

For the first months of the year, the Bank has given 36 million USD from its profits, or 330% more than the plan.

Together with the non-tax incomes, these figures have brought 105 million USD for the first four months, enabling the government’s finances to breathe.

The basic budget incomes that are collected from stable sources, such as taxes, are in their lowest level.

For the first four months, taxes have brought a budget that is 55 million USD smaller than the plan, and 30 million USD less than last year.

This decrease was caused by the sudden shrinking of the main incomes, such as VAT and excises, confirming this way the shrinking of consumption too.

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