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Home NEWSROOM

The parliamentary debate on the Draft Budget for 2022 begins

November 15, 2021
in NEWSROOM, POLITICS
Parliament passes law on borrowing at IBRD
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The debate on the Draft Budget for 2022 should start in the Parliament today. According to the announcement on the website of the Assembly, the Draft Budget is put on the agenda of the Parliamentary Committee on Finance and Budget scheduled for 11 am, and then it should be reviewed by the Legislative Committee.

The total expenses are planned at the level of 272,4 billion denars or 32 percent of GDPand revenues of 238,9 billion denars or 30,9 percent of GDP. The total income are 7,4 percent higher than in 2021, and expenditures have increased by 1,4 percent compared to expenditures in 2021, but they are lower as a percentage of GDP compared to 2021.

Capital investments for 2022 are planned at the level of 37,8 billion denars and for the first time are higher than the budget deficit which is projected at the level of 33,5 billion denars or 4,3 percent of GDP. The inflation rate is projected at 2,4 percent.

The Minister of Finance Fatmir Besimi In an interview with MIA, which was published in full at the weekend, he said that it was important for the budget to be adopted on time because it provides uninterrupted financing of state functions, strong financial support for economic recovery and accelerated, inclusive and sustainable economic development.

– It is important to emphasize that the Budget provides timely payment of salaries, pensions, social benefits, subsidies, provides realization of capital investments, which for 2022 are planned at the level of 37,8 billion denars and are higher than the budget deficit . In that way, the golden rule in public finances is respected, ie more funds are planned for financing investment projects, than the planned borrowing, Besimi said in the interview.

According to him, the Draft Budget is developed in all respects, which can be seen through the projected historically highest amount of capital investments in the total expenditures of 14 percent. Even more important, as he points out, is that they are projected at an amount that is higher than the budget deficit.

As he explains, they decided to take such a step because the Government is focused on achieving higher economic growth and better quality of life of the citizens.

– To achieve this, it is clear that there must be higher capital investments, but they should be in key infrastructure areas that will generate growth, says Besimi.

The preparation and adoption of the budget is prescribed by law and it specifies precise deadlines according to which it should be acted upon. According to those deadlines, the budget should be adopted by the Assembly by the end of the year at the latest.

Source:MIA
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