Albania's economic sustainability is threatened by the pension scheme. The concern was raised by the Governor of the Central Bank, Gent Sejko, to the Committee for Economy and Finance.
In the draft budget of 2024, these schemes are expected to create a deficit of around 3.6 percent of GDP or 1.1 percentage points higher than the budget deficit. for this reason, the Bank of Albania suggests the periodic review that regulates the pension scheme.
In the capacity of the guest for opinion, Governor Sejko requested that the ceiling, which does not allow exceeding the expenses for concession contracts above the level of 5 percent of the previous year's tax income, is not only annual, but long-term.
In the interest of increasing effectiveness and reducing potential risks arising from PPPs, the Bank of Albania suggests the inclusion of long-term legal ceilings on the total contracted value of PPPs. This regulation would be a complementary element of controlling the level of potential risk that PPPs may have on the health of public finances.
In line with the recommendations of the International Monetary Fund, the Bank of Albania also requests the removal of some of the fiscal facilities.
They can stay in the agricultural sector, but we think that in general fiscal facilities should be oriented by efficiency and not politics.
In a general opinion, the Bank of Albania assessed that the draft budget and accompanying fiscal package for the next year, respond to the problems that individuals, businesses and the country are going through. (A2 Televizion)
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