TIRANA, Nov. 8 – Finance Minister Ridvan Bode says the Albania economy will continue registering 4 percent GDP growth rate in the next two years despite global crisis effects. Introducing the 2012 draft budget on Tuesday in a meeting with heads of parliament groups, Bode said government expects the economy to grow by 4 percent this year and 4.3 percent in 2012.
He described the newly drafted budget as conservative in order to meet public debt, budget deficit and inflation targets.
Government has assured it will make no tax changes, turning down proposals by the opposition Socialist Party to turn the flat tax into progressive and lift VAT on some basic food products.
Opposition says growth at risk
Despite the more conservative and realistic budget government has drafted for 2012, the opposition Socialist Party says the GDP growth rate at 4 percent is at a risk as government won’t be able to meet revenue target.
Discussing the 2012 draft budget in the parliamentary economy committee this week, opposition MPs said the budget had not taken into consideration crisis effects from neighboring Greece and Italy, Albania’s top trade partners.
Mimi Kodheli, a Socialist MP also the deputy head of the economy committee, expressed concern over the public debt, saying that it had already exceeded the 60 percent legal ceiling if 200 million Euros in unpaid debts government owes to contracted companies is calculated.
