Parliament passes Budget 2012
05/12/2011 00:00
The Washington Agreement Must Be Reactivated! 06/01 19:04
The Albanian Parliament approved the Budget 2012 only with 71 votes of
the majority. The opposition objected over all articles of the law.
There were also harsh debates between the opposition MPs and the Minister of Finances over the fiscal policies in support of the poor class. The Socialist proposed the return of the Progressive Tax and the removal of VAT for basic food products, but the Minister declared that this would have negative effects on the economy.
The Budget 2012 foresees 396 billion ALL in government expenses and 355 billion in revenues. The difference will be financed through the new debt that will be taken in the next year, with 3% of the national production.
The new budget is only 1.5% bigger than the Budget 2011, with the government cutting 18 billion ALL in July. The 2012 Budget doesn’t go beyond the 5% growth. As for the investments, there will be no increase and will remain same as in 2011, at 70 billion ALL. The revenues are predicted to be around 252 billion ALL.
The Socialists and Democrats discussed the draft-budget last week, with the opposition presenting 12 conditions for voting the draft. The government refused, and the Parliamentary Commission of Economy is now expected to present the final relation, which foresees fund movement within the respective institutions.
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