Albania’s general budget gap widens 42.7% y/y in 2013.

By bne IntelliNews February 17, 2014

Albania’s general budget deficit widened by 42.7% y/y to ALL 65.4bn (EUR 466mn) in 2013 as revenue fell, while expenditures increased, finance ministry data showed. In our calculations, the deficit accounted for 4.8% of the projected full-year GDP, up from 3.5% a year earlier.

Total budget revenues declined by 0.5% y/y to ALL 328.6bn. Tax revenues edged up by 0.2% y/y to ALL 301.4bn, but this was unable to offset a 10.1% y/y drop in non-tax revenues.

The combined revenue from indirect taxes fell by 1.1% y/y as VAT revenues decreased by 3.1% y/y with VAT on domestic consumption down 3.3% y/y and VAT, collected by the customs, dropping 5.9% y/y. Moreover, revenues from customs duties fell by 5.9% y/y. By contrast, excise receipts increased by 6.1% y/y.

Revenues from personal income tax advanced by 5.6% y/y in 2013.

On the expenditure side, total budget spending increased by 4.7% y/y supported by a 5.1% y/y rise in current expenditure and a 6.1% 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.

We note that the government projects the budget deficit to widen to 6.5% of the GDP in 2014.

General Budget, 2013, ALL bn      
   2012 2013 % y/y
Total revenues  330.4 328.6 -0.5
   VAT  116.5 112.9 -3.1
   Corporate profit  16.9 15.1 -10.3
   Excise  36.4 38.6 6.1
   Personal income  28.0 29.6 5.6
   National  28.7 28.6 -0.4
   Customs duties  6.1 5.8 -5.9
Total social contributions  57.4 60.0 4.6
   Social insurance  49.5 51.1 3.1
   Health insurance  6.6 7.4 12.4
 Non-tax Revenues  24.0 21.6 -10.1
Total expenditures of which: 376.2 394.1 4.7
   Current 312.6 328.6 5.1
   Capital  61.7 65.4 6.1
Balance -45.9 -65.4 42.7
Balance (% of GDP forecast) -3.5 -4.8  
Source: Ministry of finance       
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

Albanian banks’ profits reach ALL28bn in 2023

Albanian banks reported profits of ALL28.5bn (€271.7bn) in 2023, according to data from the Albanian Association of Banks. All banks in the country reported a profit for the year.  The most ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    7 days ago
  4. Don't mention the "D" word - Ukraine
    4 days ago
  5. UBN: The US Needs to Wake Up
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    29 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    27 days ago
  5. Saudi Arabia to scale back plans for Neom city
    14 days ago

Reports

Dismiss