Budget will continue to be the same for another two years

Budget will continue to be the same for another two years
Authorities may collect a little more money than this year, but performance of revenues will not change a lot. According to experts of the ministry of Finance, the state budget will have a similar level of revenues and expenses for the next 2-3 years. Experts do not expect budget to register some sort of big increase and as a result, it still may not be able to change people’s standards of living. Referring to the charts provided by experts regarding the 2018 draft budget, while next year, authorities are expecting to collect a total of 464.2 billion lek, these revenues will account for 28.1% of Gross Domestic Product.

A similar figure is also expected to be in 2019 or in 2020, when revenues will once again account for 28.1% of Gross Domestic Product, although in real value, they will be higher from one year to another. So, from 494 billion lek, revenues will increase to 527 billion lek. These figures are natural with the annual economic growth that the country registers each year, however small this economic growth is. On the other hand, let us recall that revenues for this year also account for 28.2% of Gross Domestic Product, although they will amount to 438 billion lek, thus indicating that from one year to another, there will not be any progressive growth of revenues in the state budget, although more money will be collected.

Even expenses will not change a lot in the years to come

Like revenues, state budget expenses will not register lots of changes either in the years to come. Their levels will be similar. This shows the monotonous progress of the Albanian macro-economic indicators from one year to another. So, while until the end of this year, financial experts have predicted expenses not to exceed 30.2% of Gross Domestic Product, in the 2018 draft budget, expenses are projected to be 30.1%. However, next year, the state is planning to spend more money from the budget, 496.6 billion lek compared to 387.7 billion lek which are expected to be spent until the end of this year. This is a similar scheme to the budget in the following years. So, in 2019, the state is predicting total expenses not to exceed 29.8% of GDP, reflecting a fall compared to this year or next year. Meanwhile, in 2020, financial experts have predicted total expenses not to exceed 29.4% of Gross Domestic Product. A similar logic will also apply to current expenses, which occupy the largest part of the expenses that the government spends annually. According to the revenues from the ministry of Finance, in the next three years, current expenses will not exceed 24.5% of Gross Domestic Product.

7.562 taxpayers have benefited from the tax amnesty

7.562 taxpayers nationwide have benefited so far from the incentive to write off outstanding tax and customs debts accumulated throughout the years. In terms of figures, these debts account for 5.1 billion lek and this will be the amount that will be written off once this incentive is implemented. These figures have been announced by the General Directorate of Taxation, according to which, procedures to write off debts for another 25 thousand taxpayers are underway. Meanwhile, authorities also explain that taxpayers who benefit from this incentive will be informed through their e-mail address. “Tax administration invites all taxpayers to benefit from this conditional amnesty, by paying the principal of their arrears”, tax authorities explain on this. According to them, in total, outstanding tax debt, through the abovementioned incentive, is reduced by 91 billion lek, while the value of tax debt for vehicles which are unregistered, is estimated to be around 11.9 billion lek.

 

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