Albania’s general budget deficit nearly doubles y/y in Jan-April 2013.

By bne IntelliNews June 4, 2013

Albania’s general budget deficit widened by 96.5% y/y to ALL 22.8bn (EUR 162.1mn) in the first four months of 2013, finance ministry data showed. In our calculations, the deficit accounted for 1.6% of the projected full-year GDP, up from 0.9% a year earlier.

Total budget revenues edged up by 0.3% y/y to ALL 106.7bn, which was exclusively due to non-tax revenues that surged by 30.6% y/y. On the other hand, tax receipts dropped by 3% y/y to ALL 94.6bn. The combined revenue from indirect taxes fell by 5.9% y/y, as VAT revenues decreased by 6% y/y with VAT on domestic consumption down by 5.7% y/y and VAT, collected by the customs, dropping by 6.1% y/y. Moreover, revenues from customs duties and excise fell by 9.5% y/y and 5% y/y, respectively. Lower revenues from indirect taxes signal for a continued stagnation of the domestic consumption. By contrast, corporate tax revenues increased by 1.6% y/y and revenues from personal income tax also advanced by 7.6% y/y in Jan-Apr 2013.

On the expenditure side, total budget spending increased by 9.8% y/y supported by a 5.6% y/y rise in current expenditure and a 45% y/y increase in capital expenditure. The latter accounted for 36.5% of the full-year plan, which was higher that the 25.5% share a year earlier. In our view, higher spending on public investments could be partly explained by pre-election expenditures as Albania will hold parliamentary vote on June 23.

The government expects the budget gap to account for 3.4% of the GDP in 2013, higher that the 3% target set for 2012.

General Budget, Jan-Apr, ALL bn    
   2012 2013 % y/y
Total revenues  106.3 106.7 0.3
   VAT  35.4 33.2 -6.0
   Corporate profit  6.3 6.5 1.6
   Excise  10.4 9.8 -5.0
   Personal income  9.0 9.7 7.6
   National  9.2 8.7 -4.5
   Customs duties  1.8 1.6 -9.5
Total social contributions  20.4 20.5 0.4
   Social insurance  17.3 17.0 -1.8
   Health insurance  2.6 2.9 14.4
 Non-tax Revenues  8.1 10.5 30.6
Total expenditures of which: 117.9 129.5 9.8
   Current 98.1 103.6 5.6
   Capital  17.8 25.9 45.0
Balance -11.6 -22.8 96.5
Balance (% of GDP forecast) -0.9 -1.6  
Source: Ministry of finance       

Related Articles

Kosovan PM sceptical about Western Balkans common market

There would be little advantage for Kosovo to join a common market with fellow Western Balkan countries, Prime Minister Isa Mustafa wrote on his Facebook page after EU Commissioner ... more

Effigy of Albanian PM burned at protest

Supporters of Albania’s main opposition Democratic Party (DP) set fire to an effigy of Prime Minister Edi Rama at a protest on March 18, a video of the protest posted on YouTube ... more

US puts Albania, Bosnia and Serbia on blacklist of major money laundering countries

The US department of state has included Albania, Bosnia & Herzegovina and Serbia in its latest list of major ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss