No increase reported in Jan. total revenues

TIRANA, March 14 – Government’s total revenues in January 2011 were on par with a year ago in January 2010, despite higher tax revenues, according to Finance Ministry data published by the Bank of Albania.
Data show total revenues in January 2011 were at 26,87 billion lek, (around 270 million dollars) slightly down compared to 26.92 billion lek in January 2010. The situation was a result of lower grant and non-tax revenues.
Finance Ministry data show tax revenues in January 2011 climbed by 7.5 percent to 23.52 billion lek, up from 21.8 billion lek a year ago, while total expenditure rose to 25.38 billion lek, around 3 billion lek more than Jan. 2010.
Capital and current expenditure also registered slight increase. The deficit in Jan. 2011 was 1.5 billion lek, down from 4.6 billion lek a year ago.
Public investments registered a significant drop in 2010 when government was forced to make major budget cuts to reduce budget deficit and keep the high public debt levels in check.
Finance Ministry data published by the Bank of Albania show capital expenditure, which includes investments in roads, hospitals and schools, dropped to 67.5 billion lek (670 million dollars), down from 96 billion lek in 2009, which was also an electoral year.
Meanwhile, current expenditure continued increasing as government made another increase in wages and pensions last July. Current expenditure rose to nearly 300 billion lek, up from 284 billion lek in 2009.
Despite revenues growing by only 8 percent to 324.9 billion lek, up from 299.5 lek at the end of December 2009, the country’s budget deficit continued narrowing. Ministry’s preliminary data show the budget deficit more than halved to -37 billion lek compared to a record – 80.3 billion lek at the end of 2009, taking the deficit to 3.1 of the GDP, down from a record 7.4 percent.
Tax revenues at the end of December 2010 continued growing slowly, climbing to 288.8 billion lek, compared to 270.8 billion lek at the end of December 2009.
With budget revenues expected to grow by 11 percent, 2 percent more than under the revised 2010 budget, government projects the Albanian economy will grow by 5.5 percent in 2011, up from an estimated 4.1 percent in 2010, which is almost twice higher compared to what international financial institutions expect.
The Finance Ministry’s main priorities in 2011 will be keeping the high public debt under control, currently at 59.5 percent and expected to drop to 59 percent of the GDP by the end of this year, keeping inflation rate within the central bank’s 3ѱ percent and further reducing current account deficit to preserve the country’s macroeconomic stability. The 2011 budget, considered the biggest ever at 4 billion dollars will continue supporting wage and pension increases, and keep deficit in check. The 2011 budget, worth 409 billion lek (4.08 billion dollars) and with revenues at 362.2 billion lek, will take budget deficit to 46.8 billion lek, up from 38.1 billion lek in 2010 or 3.5 percent of the GDP.
Unemployment rate is also expected to be brought down to 12.5 percent down from 13.6 percent in 2010.