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Introduction 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. BUDGET DEFICIT

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BUDGET DEFICIT. Introduction. 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. BUDGET DEFICIT. General aspects of budget deficit, its origin and Albania: - PowerPoint PPT Presentation

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Page 1: Introduction

Introduction

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.

BUDGET DEFICIT

Page 2: Introduction

BUDGET DEFICIT

General aspects of budget deficit, its origin and Albania:

•Types of expenses from the government

•Incomes to cover the expenses:

a) the tax on the domestic wares and services b) customsc) the incomes from the enterprise and the propertiesd) social security e) profit and income taxf) Etc…

Page 3: Introduction

Budget Deficit and GDP:

BUDGET DEFICIT

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

0

2

4

6

8

10

12

14

16

Budget deficit/GDP( %)

Budget deficit/GDP( %)

Source: Ministry of Finance( 2010)

Page 4: Introduction

The effects that budget deficit has on familiar economies and for everyone

Higher prices

Higher taxes :

a) Increase of inflationb) Increase of debt

Every Albanian will be in charge of debt by 2328 dollars

BUDGET DEFICIT

Page 5: Introduction

The factors that led the budget deficit to the highest growth:

Durres-Kukes-Morine Road, Ineffective fiscal policy.

BUDGET DEFICIT

2007 2008 20090%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Road expenses/capital expenses

Source: Ministry of Transport and Telecommunications( 2010) and our calculations

Page 6: Introduction

Public debt as a risky tool for reducing the budget deficit

1. Domestic Debt: The effect of banks to the government

BUDGET DEFICIT

Source: Ministry of Finance( 2010)

Page 7: Introduction

2. External Debt The external debt per sector in the last three years

BUDGET DEFICIT

The external debt per sector in the last three years

Source: Ministry of Finance( 2010)

Page 8: Introduction

We have an excess of public expenditures. Not realizing of the income and overcoming of

expenditures.

Currency depreciation. What said the FMN to the government.

Conclusions

BUDGET DEFICIT

Page 9: Introduction

References Bank of Albania (2004): “ Budget deficit”, To understand the state

budget, pp. 15- 19. http://www.bankofalbania.org/web/pub/broshura_buxheti_1014_1.pdf 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 2008-2010.

http://www.minfin.gov.al/downloads/Stema%20e%20MoF.pdf Ministry of Transport and Communications (2010): Expenditures

report for 2009. Tirana. Albania.

BUDGET DEFICIT