Ruling MP admits budget cut option

TIRANA, May 8 – Selami Xhepa, a ruling Democratic Party MP and financial expert, admits budget cuts remain an inescapable option if the poor performance in the first months of 2012 continues even in the second quarter.
“Indirect indicators related to sales show there is a kind of contraction and curb which means that as expected 2012 will be a relatively more difficult year. The fact that until now performance has failed to meet targets, means we will undoubtedly make a mid-year budget review. The financial performance in the second quarter of 2012 will give a clearer picture on the needs of budget review,” Xhepa told reporters. The Democratic Party MP says possible cuts will not affect major infrastructural investments which have been secured under loans also approved by Parliament.
According to him, government does not plan to issue another Eurobond after a debut sale of 300 million euros in late 2010 as yields in international markets soar because of the debt crisis.
Latest Finance Ministry data show total government revenues during the first three months of this year grew by only 1.2 percent to 78.4 billion lek year-on-year failing to meet government targets by 5 percent or 4 billion lek (Euro 28.5 million). Government expects revenues to increase by 7.8 percent and the economy to grow by 4.3 percent for 2012, which is twice higher compared to what international financial institutions forecast