Albania Needs New Fiscal Rules for Stability and Fairness in Budget Management

Albania needs new fiscal rules to ensure sustainability and fairness. Despite exceeding revenue expectations and reducing the deficit, the budget relies heavily on Value Added Tax (VAT), which is collected mainly from a few large businesses. The economy, especially the informal and agricultural sectors, contributes little to fiscal revenue. To address this, the government should reform its fiscal framework by establishing a medium-term debt anchor and a multi-year expenditure rule. This would create a more predictable and long-term fiscal policy, ensuring macro-fiscal stability and better planning.

Source: altax.al

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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