Albania’s general budget gap more than doubles y/y in Jan-Oct 2013

By bne IntelliNews November 26, 2013

Albania’s general budget deficit surged by 111.7% y/y to ALL 54.5bn (EUR 388.6mn) in January to October 2013 as revenue fell, while expenditures increased, finance ministry data showed. In our calculations, the deficit accounted for 3.8% of the projected full-year GDP, up from 1.9% a year earlier.

Total budget revenues declined by 2.7% y/y to ALL 265.8bn, which was exclusively due to shrinking tax revenues (down 5% y/y). Within this, the combined revenue from indirect taxes fell by 6.7% y/y as VAT revenues decreased by 7.6% y/y with VAT on domestic consumption down 8.7% y/y and VAT, collected by the customs, dropping 7.3% y/y.

Moreover, revenues from customs duties and excise fell by 9.4% y/y and 3.5% y/y, respectively. Lower revenues from indirect taxes signal for a continued stagnation of the domestic consumption. By contrast, revenues from personal income tax advanced by 6.3% y/y in January to September 2013.

On the expenditure side, total budget spending increased by 7.1% y/y supported by a 5.7% y/y rise in current expenditure and a 20% y/y increase in capital expenditure. In our view, higher spending on public investments could be partly explained with the pre-election expenditures as Albania held parliamentary elections on June 23.

General Budget, Jan-Oct, ALL bn    
   2012 2013 % y/y
Total revenues  273.2 265.8 -2.7
   VAT  97.1 89.7 -7.6
   Corporate profit  13.9 12.5 -10.0
   Excise  30.7 29.6 -3.5
   Personal income  22.6 24.0 6.3
   National  23.9 23.1 -3.3
   Customs duties  5.0 4.5 -9.4
Total social contributions  48.3 50.3 4.2
   Social insurance  41.2 42.5 3.2
   Health insurance  6.0 6.2 3.8
 Non-tax Revenues  19.6 19.0 -3.1
Total expenditures of which: 299.0 320.3 7.1
   Current 252.2 266.7 5.7
   Capital  44.7 53.6 19.9
Balance -25.7 -54.5 111.7
Balance (% of GDP forecast) -1.9 -3.8  
Source: Ministry of finance       

Related Articles

DUI leader keeps options open as coalition talks begin in Macedonia

The leader of Macedonia’s ethnic Albanian Democratic Union for Integration (DUI), Ali Ahmeti, said on January 11 that his party will negotiate with the conservative VMRO-DPMNE on the formation ... more

Macedonia’s ethnic Albanian parties set conditions for joining new government

Three ethnic Albanian political parties in Macedonia adopted a joint platform on January 7 asking for more rights as a prerequisite for their participation in the new coalition government, one of the ... more

Novomatic completes acquisition of Albanian National Lottery

Europe’s leading gaming technology group Novomatic has completed the final required steps for the successful acquisition of the Albanian national lottery, the group said. The ... 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