Lowest budget since 2005

The Prime Minister refers to the figure of expenses, but says nothing about the situation of economy and public finances, and doesn’t count the inflation, the economic growth and the debt. And that’s because in real terms, by removing the effect of these factors, the budget accounts are different.

Top Channel has secured the draft that the government has just approved. The Budget 2013 not only is not the largest in history, but it is the lowest in the last 10 years. The government revenues will fall with 25.1% of the GDP next year, which is the lowest point since 2005, while the expenses will decrease from 28.7% to 28.58% next year, and this is an indicator of the lowest historical levels.

The expense decrease could have been bigger if the government wouldn’t have increased the debt. In 2013, the Budget deficit will extend to 0.4%, going to 3.4% from 3% that it actually is. This means that a larger part of the expenses will not be covered by the revenues, but by other debts, which has another cost.

The fiscal indicators in Albania are deteriorating. In 2008, the public debt was 54.7% of the GDP. Next year, according to the Prime Minister, it could rise to 62%, which means that in the last 5 years the country’s debt has increased with 1.6% each year. The public finances in Albania have entered an unstable path, and this tendency will not be interrupted, the debt burden on the economy will increase rapidly.

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