Albanias general budget deficit narrows 31.6% y/y in Jan-Jul 2012.

By bne IntelliNews August 20, 2012
Albanias general budget posted a deficit of ALL 21bn (EUR 153.7mn) in the first seven months of 2012, down 31.6% on the year, finance ministry data showed. According to our calculations, the deficit accounted for 1.5% of the projected full-year GDP, down from 2.4% of GDP for the same period a year earlier. The improvement was due to a 4% y/y growth in total revenue, coupled with a 1.2% y/y decline in budget expenditure. Tax receipts picked up 2.5% y/y and non-tax revenue advanced by 22.2% y/y. The combined revenue from indirect taxes edged up 0.7% y/y as VAT revenues were up 1.6% y/y and excise revenue saw a 0.4% y/y increase, which more than offset the 11.4% y/y decrease in customs duties. The corporate tax revenue shrank 21.4% y/y due to lower profits of companies. Receipts from social insurance contributions grew 3.5% y/y on the back of rising health insurance and social contributions. On the expenditure side, current spending increased 2.7% y/y, pushed up by higher social outlays as well as operational and maintenance expenditure. On the other hand, capital expenditure registered a 17.7% y/y decline and accounted for 45.4% of the full-year plan.
General Budget, Jan-Jul, ALL bn
2011 2012 % y/y
Total revenues 182.7 189.9 4.0
VAT 63.6 64.6 1.6
Corporate profit 12.5 9.9 -21.4
Excise 21.0 21.1 0.4
Personal income 16.2 15.8 -2.6
National 11.1 16.6 49.2
Customs duties 3.9 3.4 -11.4
Total social contributions 33.0 34.2 3.5
Social insurance 28.6 29.2 2.0
Health insurance 3.4 4.2 23.4
Non-tax Revenues 12.5 15.2 22.2
Total expenditures of which: 213.5 211.0 -1.2
Current 175.0 179.6 2.7
Capital 38.5 31.7 -17.7
Balance -30.8 -21.0 -31.6
Balance (% of GDP forecast) -2.4 -1.5
Source: Ministry of finance

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