Opposition warns state budget in danger of collapse

TIRANA, June 22 – The opposition Socialist Party (SP) says the state budget risks collapsing following failure to meet revenue targets in the first five months of this year. Speaking in a press conference last weekend, SP undersecretary for the political programme Ervin Bushati said data published by government itself show the country’s economy risks collapsing.
“The budget deficit is at 154 percent of the predicted rate at a time when tax revenues are 10 percent or 12.4 billion lek less than predicted,” said the Socialist official blaming the Finance Ministry for the poor performance.
Referring to government data, the opposition official said revenues from the value added tax (VAT) have fallen by 6 percent compared to expectations, describing it as the most realistic indicator of an economic shrink.
Profit tax revenues have also dropped by 9 percent, affecting the business sector.
The opposition, which has continuously criticized government economic policies said unemployment assistance had increased 10 percent in the first five months of this year while compensations for the former politically-persecuted, ex-land owners and electricity consumers have been zero at a time when 1.1 billion lek (10 million dollars) should have been paid.
“Domestic lending is at 260 percent of expectations and the Eurobond has been currently abandoned, the pressure has been shifted to second-tier banks which are financing government’s budget deficit and abandoning loans to local businesses,” said Bushati.
The opposition compared the promised wage and pension increase in such conditions to an amateur band continuing playing music at a time when the boat is sinking.