Shehu: Government must increase expenses

“It has been proven throughout the world that the austerity measures in difficult economic crisis are not productive. The best solution is to harmonize the stimulus with austerity measures. In Albania’s conditions, I think that this is the moment for stimulus”, Shehu declared.

Mr. Shehu says that the current economic situation imposes an aggressive policy of expenses, and for this he lists several arguments.

“There is a sensitive increase of savings, there’s a reduction of loans and maybe only the government can compensate what the banks are not doing”, Shehu declared.

But how would be financed this expense increase? The Democratic MP says that the budget must not be withheld by the debt limit, but must support the economy.

“When a say stimulus, I mean the increase of credits or loans by the government, and a good usage of this money. Loaning for project that could have a high income as return and which are important for the economy”, Shehu declared.

But if the government increases loans, the public debt might go above the 60% legal debt limit. For Shehu, a controlled crossing of this debt is not a problem.

“1% over the limit is what might unblock the situation, because that 1% will bring 100 million EUR as return”, Shehu declared.

In the electoral year 2009, the government increased the expenses in the record level of 33% of the GDP. The debt went to the maximal level and the budget expenses have fallen with 28.6 only for the last year.

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