 Budget deficit is a problem for Albania in the last three years.  General aspests of B.D., it’s origins and Albania.  The factors that led the budget deficit in his highest growth. BUDGET DEFICIT

General aspects of budget deficit, its origin and Albania: Types of expenses from the government Incomes to cover the expenses: a) the tax on the domestic wares and services b) customs c) the incomes from the enterprise and the properties d) social security e) profit and income tax f) Etc…

Budget Deficit and GDP: Source: Ministry of Finance( 2010)

The effects that budget deficit has on familiar economies and for everyone  Higher prices  Higher taxes : a) Increase of inflation b) Increase of debt  Every Albanian will be in charge of debt by 2328 dollars

 The factors that led the budget deficit to the highest growth:  Durres-Kukes-Morine Road,  Ineffective fiscal policy. Source: Ministry of Transport and Telecommunications( 2010) and our calculations

Public debt as a risky tool for reducing the budget deficit 1. Domestic Debt:  The effect of banks to the government Source: Ministry of Finance( 2010)

2. External Debt  The external debt per sector in the last three years The external debt per sector in the last three years Source: Ministry of Finance( 2010)

 We have an excess of public expenditures.  Not realizing of the income and overcoming of expenditures.  Currency depreciation.  What said the FMN to the government.

References  Bank of Albania (2004): “ Budget deficit”, To understand the state budget, pp f accessed  International Monetary Found (2010):” Fiscal Policies”, Fiscal Objectives in post IMF Program World: The case of Albania, Working Paper No.10, pp.3-6.  Angjeli, Anastas (2007): Transition and economic freedom in Albania. Tirana: Geer.  SOROS Fund Management (2010): The State Budget Monitoring 2009.Tirana. Albania.  Ministry of Finance (2010): Public Debt Strategy for the period   Ministry of Transport and Communications (2010): Expenditures report for Tirana. Albania.