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Ekonomia

Budget changes approved, 2020 closes with 4.4 percent economic decline, debt goes to 79 percent

Budget changes approved, 2020 closes with 4.4 percent economic decline, debt

The economy for 2020 has closed under the effect of a deepening crisis from the pandemic, which brought significant contractions. Yesterday in the Committee on Economy were discussed the changes made in the 2020 budget for the reallocations at the end of the year for the settlement of some obligations and the awarding of bonuses in some special items. During his speech, the head of the Commission, Anastas Angjeli, said that despite the recovery efforts in the fourth quarter, the economy has continued to decline. According to Angjeli, the last months closed with an economic decline of about 4.4%, while public debt at 79.8%. The head of the Commission explained that this high level of debt and significant contraction of the economy was inevitable, as long as incomes continued to decline and expenditures were high due to the consequences of the pandemic. "Due to the two shocks that the Albanian economy received, the earthquake and the pandemic, the state of macroeconomic indicators, especially in economic growth, has experienced a contraction. So far, economic growth and growth is projected at 4.4%, budget deficit at 6.7% and we must admit that public debt remains at high levels around 79.8%. However, the parameters remain within the forecasts, as the economic plan foresaw an economic decline of 6% ", he said. Regarding the changes in the 2020 budget for reallocation of funds, the Deputy Minister of Finance and Economy, Adela Xhemali, showed that over 4 billion ALL will be added to the items that finance families in need and people with disabilities, focusing on families affected by the coronavirus . “Referring to the most important allocations, the normative act determines the allocation of the fund 3.

Municipalities with high level of debt

While explaining that the economic downturn has been greatly affected by the tax debt of 130 billion ALL, Deputy Minister Xhemali showed that most of the debts are created by municipalities and water supply and sewerage companies. Thus, in this reallocation of funds, the government has decided to give over 816 million ALL to municipalities for the settlement of arrears, while 420 million ALL will go to water supply and sewerage, which also have outstanding liabilities. “70 million ALL will be given to local government units that have had difficulties in collecting revenues and are behind with the payment of obligations. The increase of funds in the amount of 420 million ALL in the item of subsidy of water supply and sewerage companies, in order to settle arrears in the item of social and health insurance contributions and profit tax. The allocation of this fund of 420 million ALL in the item subsidies has a neutral effect on the 2020 budget, as it will automatically go for the payment of the above-mentioned obligations, being registered as income in the 2020 budget. Also, in the Normative Act is determined additional funds for the Ministry of Infrastructure and Energy in the amount of 200 million ALL ", said Xhemali. The Normative Act provides additional funding in the amount of ALL 673 million for two priority projects of the CEC, respectively, as well as the allocation of a fund of ALL 97 million for the establishment of support systems for the operation of the SPAK and BKH building. . Further,

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