Poor budget for 2012
31/10/2011 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
The government is obliged to withdraw in front of the crisis and predict
for the next year one of the budgets with the smallest economic growth
in history.
Top Channel has learned that the final draft that will be sent for a review to the Committee of Strategic Planning has predicted that the total revenues will be 353 billion ALL or only 10 billion ALL more than the budget reviewed this year.
The growth is less than 3%, almost the same with 2009, when the revenues were hit by the crisis, the price decrease and the electoral campaign. But the government has also tightened the expenses.
In 2012, the budget predicted 394 million ALL in expenses, or only 1% more than this year. This is the lowest historical budget increase in a decade, excluding 2010, when the government was forced to cut its expenses for stabilizing the public finances that had started to go out of control.
Although the final draft has not been made public yet, keeping the expense increase at only 1% seems a strong test for the government, which has promised new increase of wage and pensions. Chances are that the budget of the next year will hit the public investment again, the voice that is hit every time that the government’s financial situation is deteriorated.
Top Channel
