Government changes budget 2013
04/02/2013 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
The Budget 2013 has been officially violated only one month after it
passed in Parliament. The government has changed the most important
draft indicators, deviating from the variant that the Parliament passed
on December 2012.
The changes start with the debt limit. The current law has a 62.2% limit of the GDP. The Prime Minister and the Minister of Finances promised that this debt should limit not be changed.
But the economic and fiscal plan published only a few days ago showed that the debt will go up to 63.8% of the GDP.
The removal of the 60% debt limit eliminates all obstacles for the government. In a few days, the debt limit increased with 1.2% and by the end of the year it is expected to reach 4% more than the 60% limit, despite the strong warnings from the IMF and World Bank.
The debt indicator is not the only one that gets worse. The government has reduced even further the economic growth for 2013, from 4% to 3.1%. These are the first signals showing that the economic situation will be deteriorated.
There’s a risk that the figures will be changed again by the end of the year, as it happened last year, when the economic growth from 4.3% ended up to 1.5%, while the debt went from 58% to 61.4% of the GDP.
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