From: Exit Staff
Albanian Finance Minister Optimistic Economy will Bounce Back

The Minister of Finance, Anila Denaj, expressed optimism for economic growth for 2021 but warned of an increase in public debt.

Speaking on Thursday in the assembly about the draft budget 2021, Denaj said that ‘we expect a growth of 5.5 per cent, significantly returning the Albanian economy to the ascending order and sustainable growth’.

According to the minister, this forecast is based ‘not only on the fact that the situation is well managed but also on the fact that the basic foundations of the economy are stable and solid’.

However, Denaj warned that due to the pandemic and the November 26 earthquake, public debt and deficit will increase:

“We have to say that this year and next year, as a result of two consecutive shocks, the general budget deficit and debt will expand. This expansion of the fiscal deficit will be quite temporary and well-targeted, to minimize the effects of the two shocks.”

She asked all MPs to vote in favour of the draft budget 2021:

“To vote in favour of a budget that expresses the government’s commitment to an economic recovery in the medium term.”

As Exit News has previously written, the draft budget 2021 drafted by the government is a budget for the election year, with optimistic claims of the government for revenue collection and which provides for the allocation of about $ 400 million in new concession contracts.

The Bank of Albania, during the meeting with the Committee on Economy, expressed its concern about the forecasts made by the government in the draft budget 2021, especially for the collection of revenues for 2021,investments through Public-Private Partnerships and high public debt.

Among other things, the BoA has recommended to the government to be careful with the expenditures foreseen in the high draft budgets and to base them depending on the pace of revenue collection.

Regarding public debt, the BoA expresses concern that despite the government’s forecast to reduce debt by two percentage points by the end of 2021, the level of debt remains worrying.