Medium term budget discussed in advance

DURRES, March.25 – The Council of Ministers met to discuss the specifics of the integrated plan for designing the medium term budget for 2008-2010. The meeting precedes a series of informative meetings that will make clear the rules for designing the budget, the most important pillar of work programs for every ministry. Prime Minister Berisha explained that the Committee for Strategic Planning has met quite frequently in the last two weeks in order to address the necessary components of the there year plan. The budget actually extends one year beyond the regular mandate of the right wing collation government. The budget preparation requires the direct engagement of the ministers, vice ministers and directors of specific sectors of each ministry. The committee has approved up until now the main guidelines with respect to the fiscal packages, the spending limits, changes in taxes (such s the currently proposed flat rate of 10 percent) and an increase in the amount allocated to the defense sector by 2 percent given the efforts for becoming part of NATO.
Berisha called for a new conceptualization of the budget preparation to avoid delays caused by fragmentation and bureaucratic impediments. The budge has to be submitted at the end of August. The new budget has also to reflect a consideration of all interest groups and include reflections of dialogue between the administration and citizens in order to address specific needs. More money is expected to be allocated to local government which coupled with their independent mechanisms is expected to generate smaller coordination needs with the central structures.
Berisha also analyzed some of the complaint addressed to the Finance Ministry and called for more work on the side of investment and auditing agencies. He said that the realization of 93 percent of budgeted activities for 2006 is overall a good achievement.
The meeting also analyzed the situation of foreign investments which has been problematic so far. During the last decade investments reached 60 percent only last year. The Finance Ministry was allocated the task to diversify the sources of foreign investment. Berisha also called for a complete reversal of this trend through minimizing bureaucratic obstacles and having a new concept for these investments that are very necessary for the Albanian economy.