As per the Albania budget 2012 the national economy is expected to grow at a rate of 4.3 percent. According to experts this prediction is pretty higher than the forecasts of 1.5 percent made by the International Monetary Fund.
The World Bank has also estimated that in 2012 the Albanian economy will grow at 2 percent.
Highlights of Albania Budget 2012:
As per government estimates Albania will earn 355.8 billion lek or 2.544 billion euros in 2012.
The public expenditure for the 2012 fiscal has been calculated at approximately 2.83 billion or 397 billion lek.
The 2012 budget will allot more money for civil emergency. The Ministry of Interior will get 1.1 billion lek more than what they received in 2011 fiscal.
50 percent of this amount will be allotted for the General Directorate of Civil Emergencies.
The defense ministry will be provided with 19.9 billion lek compared to 19.8 billion in 2011 fiscal, an increase of 100 million lek.
The 2012 Albania budget will aim at aiding the social sectors and public investments in order to protect the country from the aftereffects of the present global economic problems.
Expectations from Albania Budget 2012:
Both the World Bank and the IMF estimate that Albania s economic growth will be affected by the present debt crisis in Eurozone. Its primary trading partners Greece and Italy are among the major reasons for the present financial condition of the Euro and it is anticipated that this could cause serious economic problems for Albania.
One of the major problems hampering Albania s economy is its public debt, which is presently 59.4% of its GDP. But this figure is comparatively lower than several countries in Western Europe.
The Prime Minister of Albania, Sali Berisha, feels that the 2012 budget is good enough to ensure overall macroeconomic consistency. He feels that this budget will continue the economic policies that have previously been successful. He has also stated that the 2012 budget will ensure that Albania is economically stable and has a sustainable growth rate. It is also supposed to aid several projects that are important from Albania s perspective.
But Gramoz Ruci, a leader from the Socialist Parliament Group, opines that this budget does not introduce any fiscal policy and is ineffective when it comes to poverty reduction.
Ruci has also stated that the 2012 budget does not provide any support for critical sectors such as education and agriculture and problems pertaining to waste materials, forests and rivers are not properly dealt with. He has further stated that the 2012 budget does adhere to any of the 12 priorities set by the European Union.
Overall, the opposition feels that the government has not done enough with the 2012 budget to deal with the repercussions of the global financial crisis, especially in respect to the steps being taken in other countries.