Budget cuts affect public administration funds

TIRANA, July 11 – The budget cuts made by the ruling majority this month, following a decrease in revenues and rising budget deficit during this mid-year, will also severely affect the public administration. A government decision dated July 2, published only on the Finance Ministry’s website foresees a freeze in new hiring in the public administration and a suspension in public procurement funds after July 1, except for food and medicine purchases. The disciplining of funds also foresees a cut in rewards and allowances for trainings and trips abroad.
The 18.3 billion lek (183 million dollars) budget cuts that the majority approved in Parliament will mostly affect the Public Works ministry whose funds will be cut by 2.8 billion lek (USD 28 million) for the remaining half of this year. Funds in the Ministry of Education and the Ministry of Defence will also be cut by 2 billion lek and 1.8 billion lek respectively.
Several independent institutions such as the President’s Office, Parliament, the State Intelligence Service, the Supreme State Audit and the Prosecutor’s General Office have also undergone slight budget cuts.
The budget cuts approved this week in Parliament were aimed at keeping budget deficit at 3.5 percent of the GDP and the high public debt levels at 60 percent of the GDP.
Government expects the country’s economy to grow by 5 percent after the budget cuts almost twice more compared to what the International Monetary Fund officials announced during their latest visit as government was revising the budget.