IMF says Albania needs to raise tax revenues to cover increasing costs

By bne IntelliNews September 29, 2020

The International Monetary Fund (IMF) said that the Albanian authorities should increase tax revenues to sustain the higher spending needs of the people and the economy.

The statement was released after the IMF mission led by Yan Sun, conducted a virtual visit during September 17-28.

"The November 2019 earthquake and the COVID-19 pandemic have taken a big toll on the lives of Albanian people and the economy," the IMF said in the staff concluding statement of the first post-programme monitoring mission on September 28.

The IMF underlined that at the same time there is a need to contain and manage increasing fiscal risks and strengthen the management of public resources, notably of public investment.

The IMF also suggested that there is a need for the government to prepare contingency measures in case of a more severe pandemic.

According to the IMF projection, Albania’s fiscal deficit is projected to rise to about 7% of GDP and the public debt to slightly above 80% of GDP at end-2020. The economy is expected to contract 7.5% in 2020.

Related Articles

Albanian PM warns of second lockdown if measures are not respected

Albanian Prime Minister Edi Rama once again urged people to respect anti-coronavirus measures on October 19, emphasising that otherwise the country will face a second lockdown. The country is ... more

Albanian soccer clubs plan protest after PM turns down request for support

Albanian football teams announced a major protest in front of the PM Edi Rama's office on October 10 after Rama turned down requests for more financial support for the country’s soccer clubs, local ... more

Second patient commits suicide at COVID-19-struck Albanian hospital where corpses reportedly left among patients

A second patient infected with coronavirus (COVID-19) has committed suicide in Albania, jumping from a window of a Tirana hospital, local media reported on September 3. The hospital lacks staff as ... more

Dismiss