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BUDGET DEFICIT
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Budget deficit is a problem for Albania in the last
three years.
General aspests of B.D., it’s origins and Albania.
The factors that led the budget deficit in his
highest growth.
General aspects of budget deficit, its origin and Albania:
•Types
of expenses from the government
•Incomes
a)
b)
c)
d)
e)
f)
to cover the expenses:
the tax on the domestic wares and services
customs
the incomes from the enterprise and the properties
social security
profit and income tax
Etc…
Budget Deficit and GDP:
Budget deficit/GDP( %)
16
14
12
10
8
Budget deficit/GDP( %)
6
4
2
0
Source: Ministry of Finance( 2010)
The effects that budget deficit has on familiar
economies and for everyone

Higher prices

Higher taxes :
b)
Increase of inflation
Increase of debt

Every Albanian will be in charge of debt by 2328 dollars
a)

The factors that led the budget deficit to the
highest growth:
 Durres-Kukes-Morine Road,
 Ineffective fiscal policy.
90%
80%
70%
60%
50%
Road expenses/capital
40%
expenses
30%
20%
10%
0%
2007
2008
2009
Source: Ministry of Transport and Telecommunications( 2010) and our calculations
Public debt as a risky tool for reducing the
budget deficit
1.

Domestic Debt:
The effect of banks to the government
Source: Ministry of Finance( 2010)
2.
External Debt

The external debt per sector in the last three years
The external debt per sector in the last three years
Source: Ministry of Finance( 2010)

We have an excess of public expenditures.

Not realizing of the income and overcoming of expenditures.
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Currency depreciation.
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What said the FMN to the government.
References
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Bank of Albania (2004): “ Budget deficit”, To understand the state
budget, pp. 15- 19.
http://www.bankofalbania.org/web/pub/broshura_buxheti_1014_1.pd
f accessed 15.04.2011
International Monetary Found (2010):” Fiscal Policies” , Fiscal
Objectives in post IMF Program World: The case of Albania, Working
Paper No.10, pp.3-6.
Angjeli, Anastas (2007): Transition and economic freedom in Albania.
Tirana: Geer.
SOROS Fund Management (2010): The State Budget Monitoring
2009.Tirana. Albania.
Ministry of Finance (2010): Public Debt Strategy for the period 20082010.
http://www.minfin.gov.al/downloads/Stema%20e%20MoF.pdf
Ministry of Transport and Communications (2010): Expenditures report
for 2009. Tirana. Albania.