TIRANA, Nov. 27- The parliament has approved the Albanian budget with 65 votes in favor and 34 against. The opposition voted against the budget, the most important measure of the year, after the government did not consider its proposals for changes. Deputy Head of the Economy Commission, Arben Malaj, presented the MPs with a packet of proposals from the opposition which, he claimed, were already found within the 2008 budget for the revenues and expenses.
Objections and proposals for change
The opposition was not the only one to raise objections regarding the draft budget. Its main objections were the rising levels of debt, especially for the Durres-Kukes road, the lack of allocated funds for identity cards, and other issues. The opposition has asked for an additional 6.3 billion lek to be committed to the expense funds of the priority sectors such as education, health care and independent institutions. The proposals have been judged as a positive move by the opposition according to the Prime Minister, who did not participate in the final vote for the budget
The Republican Party has also opposed article number eight in the budget regarding compensation for land which is only $5 million.
The IMF has criticized raising budget deficits, explaining that going beyond five percent of the GDP may be harmful for the Albanian economy. The government has replied that the rising debt for public investments is the reason for the deficit and, thus, cannot be harmful. Revenues for the budget of 2008 are estimated at 283.7 billion lek while expenses are 369 billion lek. The budget deficit is at the level of 85. 4 billion lek, or 7.9 percent of the GDP.
The lack of allocated funds for identity cards has been a virulent point in the opposition’s argument. MP Blendi Klosi from the SP has asked for the administration to allocate 30 million euro for the process and to the management of the Internal Ministry in order to push this forward. Finance Minister Bode has opposed the suggestion because the price of these cards cannot be estimated while the tender is still ongoing.
