The government has approved the draft budget for 2021, forecasting to spend 587.6 billion L, while revenues are planned to be 479 billion L with a budget deficit of 6.5% of Gross Domestic Product, writes abcnews.al.
Budget deficit indicators are the highest in recent years and according to the government have been affected by the pandemic as well as the shock that the country’s economy received from the November 26 earthquake.
Wage increase
The government has planned L 8 billion for the salary increase fund for next year where the focus seems to be on the health sector.
It is learned that a salary increase of 40% on average for doctors and nurses is projected, while the average increase for teachers will be 15%. The government plans to spend 4.5 billion L on increasing doctors ‘salaries and an additional 3.5 billion L on teachers’ salaries.
Total expenditures for salaries in the Public Administration are planned in the amount of L 91.87 billion or 5.5% of GDP.
Owners and the persecuted
Meanwhile, the government has provided a fund of 3 billion L for the compensation of owners as well as 1 billion L for the political persecution.
The draft budget also reflects a fund of L 22.2 billion for economic assistance and L 800 million for the payment of unemployment. Also, L 2.2 billion are provided for the birth bonus.
Investments
Public investments for 2021 are planned at the rate of 7.2% of GDP or L 120.6 billion (including the reconstruction fund in the amount of L 27 billion).
In the investment planning for 2021, all contractual obligations for investment projects with foreign and domestic financing have been taken into consideration. Just like in 2020, and in 2021 the financing of ongoing projects will be a priority.
Fuel for farmers
Also, as a new policy for 2021, a fund of L 1 billion has been approved in the form of a support scheme for farmers through the exclusion of fuel for agricultural production from excise, turnover tax and carbon tax./abcnews.al
