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The government ignores the recommendation of the IMF, changes the budget again with a normative act

2023-10-18 13:50:26Fokus SHKRUAR NGA REDAKSIA VOX
The government ignores the recommendation of the IMF, changes the budget again
Ervin Mete

"The use of normative acts to change the budget within the year, except for emergency circumstances, should be stopped". This was the recommendation in the form of an ordinance that the International Monetary Fund gave to the Albanian Government in the autumn report of 2021.

At the end of that year, the Government admitted the 'mistake' and IMF staff announced that the Albanian executive had committed to stop using normative acts for budget revisions in 2022 and had assured that any changes would be subject to normal parliamentary approval.

But, from what is said to what is done, there is a whole sea in between! In 2022, the government changed the budget four times with normative acts, despite the recommendation of the IMF and the promise made to the fund by the Albanian side.

The changes were argued with the energy emergency, which was caused after the outbreak of the war in Ukraine. However, of the four interventions with normative acts that avoided parliamentary discussions on the basic finance law, only one of them was directly related to energy.

The same practice continues throughout this year. The new Minister of Finance, Ervin Mete, announced the amendment of the budget by normative act, where he increases the revenue plan by 70 million euros, allocates 115 million euros for reconstruction and redistributes a total of almost 435 million euros, or 8 percent of the total amount of budget for this year.

The decision taken through the normative act avoids the debates in the parliamentary committees and according to the evaluations of the IMF over the years, it reduces their control and transparency, as well as increases the possibility of their addressing items that are not considered priorities for the Albanian economy.

The European Council has expressed itself against the change of the budget with normative acts through the annual progress reports for Albania.

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