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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