Albania’s general budget swings to EUR 16.5mn surplus in Jan 2014.

By bne IntelliNews February 25, 2014

Albania’s general budget posted a surplus of ALL 2.3bn (EUR 16.5mn) in January 2014, swinging from a deficit of ALL 0.2bn a year earlier, data from the finance ministry showed.

The improvement was due to a 10.5% y/y drop in budget spending, which was exclusively on account of lower public investments. On the other hand, current expenditure advanced by 1.3% y/y in the month.

Total budget revenues declined by 1.4% y/y to ALL 27.3bn. Tax revenues remained flat on the year at ALL 17bn. Within this group, revenues from VAT increased by 13.8% y/y to ALL 9bn, which was sufficient to offset falling revenues from excise, corporate and income taxes. Total social contributions picked up 1.3% y/y in January 2014.

Last year Albania’s general budget deficit widened by 42.7% y/y to ALL 65.4bn, as revenue fell, while expenditures increased. In our calculations, the deficit accounted for 4.9% of the projected full-year GDP, up from 3.5% a year earlier.

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

General Budget, January, ALL bn    
   2013 2014 % y/y
Total revenues  27.7 27.3 -1.4
   VAT  7.9 9.0 13.8
   Corporate profit  1.3 1.0 -25.3
   Excise  2.5 1.6 -36.4
   Personal income  2.7 2.6 -5.0
   National  2.2 2.5 12.0
   Customs duties  0.3 0.4 12.5
Total social contributions  5.9 6.0 1.3
   Social insurance  5.5 5.3 -4.9
   Health insurance  0.2 0.7 241.9
 Non-tax Revenues  3.1 2.8 -9.8
Total expenditures of which: 27.9 25.0 -10.5
   Current 24.0 24.3 1.3
   Capital  3.9 0.7 -82.6
Balance -0.2 2.3 -1,179.3
Balance (% of GDP forecast) 0.0 0.2  
Source: Ministry of finance       

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