[ad_1]
The government cut its economic growth forecast for this year to 3.5%, forced after the energy crisis and strong price increases.
The Normative Act with the changes of the budget received today the approval of the Committee of Economy, where the government through it increased the expectations for the revenues to 10 billion ALL, and the expenses also increased.
With the new interventions, Finance increased ALL 20 billion for the energy sector and ALL 6 billion to cover the costs of the social resistance package. ALL 16 billion of these expenditures are provided by reallocations and cuts of line ministries, while the rest will be covered by revenue growth.
“In all scenarios we expect to have positive growth. In the scenario presented to you it is about 3.5%, but we also have other more pessimistic scenarios with higher inflation rates. We have made cuts in projects that were new and had not started yet, they are projects that can be postponed in time “, said Delina Ibrahimaj.
While stating that the price crisis will shrink consumption, the Minister of Finance Delina Ibrahimaj said that if the situation worsens the budget will be reviewed again, not excluding concessions.
“In this scenario, we predict that average inflation will reach 4.5%. This temporary increase in inflation is expected to have a restraining effect on purchasing power. If necessary we will intervene in the items of the state budget as we have done before. We will slow down the expenses that are not a priority and that can be postponed in time next year “, Delina Ibrahimaj.
The government expects the expansion of revenues to ALL 10 billion to come mainly from the increase in Value Added Tax by ALL 7 billion and the excise tax affected by the increase in the price of goods.
top channel
[ad_2]
Source link
