BREAKING NEWS

Basha reveals Sali Berisha's secret plan

Basha reveals Sali Berisha's secret plan
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BREAKING NEWS

Good news from Infectious! Here is what happened in the last 24 hours

Good news from Infectious! Here is what happened in the last 24 hours
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BREAKING NEWS

The German ambassador goes to Basha's office, it is clarified what was discussed

The German ambassador goes to Basha's office, it is clarified what was
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BREAKING NEWS

"Earthquake!" / Romanian media publishes the facts and writes about the radical changes that are expected to happen: The map may change, Albania and Kosovo will unite

"Earthquake!" / Romanian media publishes the facts and writes about
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Art in mourning / Famous Albanian actor dies (NAME + PHOTO)

Art in mourning / Famous Albanian actor dies (NAME + PHOTO)
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BREAKING NEWS

The clash between the presidency and the Government deepens / "Violates the constitution and the autonomy of the local government", Ilir Meta comes out with the latest decision

The clash between the presidency and the Government deepens / "Violates the
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BREAKING NEWS

"Evidence for declaring 'non-women' provided by FBI and CIA", Spartak Ngjela detonates 'bomb' for Sali Berisha

"Evidence for declaring 'non-women' provided by FBI and
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BREAKING NEWS

Ulsi Manja with 'strong hand', comes out with the important warning

Ulsi Manja with 'strong hand', comes out with the important warning
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Opinion / Editorial

Budget of hope and risks

Budget of hope and risks

The draft budget for 2022 of our government is very bold. It dares to increase revenues by 377 million euros, or 7.8 percent of national production. It is trying to increase public investment by 58 million euros more, or 6.6 percent above the expected level this year. Although we are still in the middle of a pandemic, it raises salaries for some categories of public administration. We sincerely hope, with all our hearts, that the economic growth will be proven, why not even 4.5 percent for next year, and that the incomes will come to us according to the forecast. That the aid to agriculture is complete and that it shows itself not only as a lifeline in difficult years, but also as a genuine engine of development. That the money spent on increasing the use of information technology in sectors such as education and health enable us to rapidly grow and improve key public services. But ... the budget, this bunch of thousands of economic ropes connected to each other, also has thousands of "buts" behind it. Professor Milton Friedman, winner of the Nobel Prize in Economics in 1976 for his contribution to consumption analysis, spoke of a state budget that was very bold in forecasting revenue and investment, more like a ship sailing between Sheila and the Caribbean. . Shila and Karibda are two rock masses facing each other, two steep shores of the Messina Strait in Italy, between the teeth of which hundreds of ships have sunk in antiquity. Of course, we do not want our state budget to suffer the fate of the ships of antiquity in the Messiah and we hope it succeeds. Only that the risks are very high. Starting from the debt with the Fifth Eurobond of 700 million euros. If all debt were to be used only to help agriculture with subsidies and grants for agro-tourism projects, halal! But the formula with which the debt is dealt with is "For budget support". Which means a lot of things. This debt can be taken to afford the high wage increase bill of 6 per cent this year. It can be taken for the bonus of 680 thousand pensioners, which must be at least 100 euros per pensioner (60 percent of the average pension in our country), to fulfill the promise of the government program 2021-2025, that pensions will increase by 5 percent each year. It can be taken to cover the extraordinary deficit of the pension and social insurance scheme of ALL 100 billion (EUR 825 million), as much as the entire deficit of our State Budget for next year. It can be taken for public investments, where we do not give up 5 new PPPs, which cost the budget tens of millions of euros. And for the 227 PPP concessions that are currently, let's not forget that for next year we will be obliged to pay not a little, but full of 118 million euros of their liabilities. The repayment of this fifth Eurobond may be financed by obtaining a new debt (another Eurobond), as has happened with the last three Eurobonds. But as a country we will get new debt in an environment of international markets, with interest rates that may be significantly less favorable than today. On the other hand, the growth rate of Albania's official debt is worrying, from 67.3 percent of national production in 2019, to 77.6% of it in 2020 and has reached 80 percent now that we are talking! This can be anything but a steady debt. The latest report of the Ministry of Finance, which talks about reducing to 60 percent of the national production of our public debt in 2028, blows up the promise of the third term of the Socialists that the safe anchor of 60 percent as a debt level will arrived in 2025! Therefore we must be very careful and responsibly manage the execution of expenditures and especially the collection of budget revenues. In this second lies the greatest challenge. We need to be able to raise enough revenue by reducing informality and evasion, which is carried out with the help of the corruption of our taxpayers. Will we manage to do it? Let's hope.