December 10 (SeeNews) - Albania’s president Ilir Meta refused to sign into law the 2022 budget bill because, in his view, it fails to provide for the efficient and effective use of public finances to meet the country's needs, he said on Friday.
The budget does not provide sufficient support for economic sectors, especially for agriculture, it lacks transparency regarding expenditures and fiscal policies, and it does not lay out a clear plan on how to reduce public debt impacted by the Covid-19 crisis, Meta said in a press release.
The 2022 budget does not envisage the necessary support for people in need regarding the treatment of Covid-19 infection, the president also said, describing the budget as “anti-social”.
Last month, the parliament endorsed the 2022 draft budget which targets a deficit equivalent to 5.4% of the planned gross domestic product (GDP) and is based on projections for 4.1% economic growth.
Revenues are estimated at 536.8 billion leks ($4.9 billion/4.4 billion euro), up 7.8% from the amount envisaged in the 2021 budget, while expenditures are expected to increase by 4.6% to 637.7 billion leks.
Parliament should now either revise the budget, taking into account the president's objections, or override the president's veto.
The budget’s main objective is to support the country's economic recovery and advance structural reforms to boost economic growth and employment, assist people in need, increase productivity, strengthen the rule of raw, digitalise the economy and continue important infrastructure investments, according to documents published on the parliament's website.
The public debt-to-GDP ratio is expected to fall to 78.9% in 2022, from 80% expected for the current year.
The budget also plans public investments in the amount of 6.4% of GDP.
The unemployment rate is projected to decrease to 10.3% next year, from 11.4% expected in 2021.
Albania's economy is expected to increase by 7.6% in 2021, according to government estimates.
In 2020, Albania's GDP fell by 4%, after a 2.2% increase in 2019, according to national statistical office data.
(1 euro = 119.927 leks)