TIRANA, Oct.23 – The government has approved significant increases in its operational expenses. Despite the electoral promises to keep these kinds of expenses at bay, and the criticism aimed at the socialist government for not doing so, the right wing coalition in power has changed the trend for the 2008 projected budget. Increased expenses will add 16.4 percent additional expenses in next year’s budget. The Finance Ministry has justified this expense as necessary “to maintain the government’s investments.” The budget deficit is expected to increase to 7.95 percent of the GDP from 3.26 percent in 2006.
Indicators of 2008
The government pans to raise money through commercial loans. The Durres-Kukes road project will be financed using loans valued at 100 million euro. Internal financing for the debt is expected to reach 2.7 percent of the GDP. Another 5.2 percent of the GDP will be the foreign debt. Revenues for the state budget are estimated at 283,7 billion lek, 26.4 percent of the GDP, an increase of 29.7 billion lek compared to 2007. General expenses of the government for next year will reach 369.2 billion leks, 19.2 percent higher than the supplementary budget of 2007, or an absolute rise of 59.5 billion lek.
