2018 Draft Budget is in line with Albania’s fiscal consolidation strategy: BoA Governor

The next year’s budget and the fiscal package that accompanies it set fiscal incentives that affect decisions of the private sector for consumption and investment.

This is the opinion of the Bank of Albania, made public by Governor Gent Sejko, at the Parliamentary Committee of Economy.

According to Sejkos, these aspects positively affect domestic demand, economic growth, employment and welfare.

“The Bank of Albania notes that, through the targeting of a positive primary balance and the intention to further reduce public debt, the 2018 Draft Budget continues the path of fiscal consolidation. The Bank of Albania estimates that this draft budget keeps unchanged the combination of economic policies that have supported the development of the country, something that helps to further strengthen the macroeconomic balances, boosts investor confidence in the Albanian economy and sends the appropriate signals to the financial markets and public debt rating agencies,” Sejko said.

Asked by opposition MPs whether the BoA is aware of the government’s “1 billion euro” project, Sejko responded that the banking system is monitorable, while adding that there are regulations on funding.

According to Sejko, the composition of public spending is more supportive of the country’s development.

Capital expenditures are projected to grow at faster rates than current expenditures, while their overall effect on the economic growth is relatively larger and more stable over time.

Governor’s suggestions for the next year’s budget focused on five key points:

1-On the deficits of social and health insurance schemes

2-On Public-Private Partnership Programs

3-On the Debt Financing Structure

4- On observing the projected level of budget deficit during 2018

5-On the effectiveness of public finances

SCAN

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