Malaj: Elections increased debt
28/05/2011 16:15
The Washington Agreement Must Be Reactivated! 06/01 19:04
Former Socialist Minister of Finances, Arben Malaj, warned that the bad
management of the budget for electoral purposes has returned the risk of
disorganizing public finances and increasing government’s debt.
“The government rushed to use the money loaned by the public and the Central Bank, three times more than the normal, surpassing operative expenses”, Malaj declared.
In the last four months, the government took from domestic banks a debt three times larger than budget law provides. Arben Malaj says that this disorganization of budget indicators has been made with Bank of Albania blessing.
“The real authority of the Central Bank is to control inner loans, but this has not happened”, Malaj declared.
Expenses are not the only voice that deviated from the schedule. Incomes from main taxes (excise and VAT) have also decreased, warning of obligatory measures within the remaining months.
“In these conditions, when the government is obliged to control the deficit, there will be expense cuts that will damage other individuals. Private companies must be careful with their works financed by the government”, Malaj underlined.
If budget indicators will not return within the predicted limits, the government might be obliged to cut funds from main economy sectors, like health and education.
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