Public Debt in Albania and Some Ideas on the Good Management of Public Finances

Abstract

The material aims to make an analysis of all the numerous public discussions today in Albania regarding the public debt and ways and manners to balance it. Not only in Albania but also in the Euro zone countries like Greece, Spain, Ireland, Cyprus, Portugal, the management and control of public debt is the priority of the economy because of the threat that brings the high public debt on public finances due to macroeconomic instability. Albania's public debt reached in early 2013 to 63.8% of GDP, while the countries of the region have a lower debt level and higher GDP. There is a law in Albania on the basis of which it is realized such budget management to determine the level which was 60% of government debt. This level was changed by the Albanian Parliament in December 2012 going to 62%, a change which was accompanied by heated debates among parliamentary parties and groups of economists. But what should be the level of public debt in order to give breathing to the economy, to promote employment and reduce the unemployment. How will the government be able to come out of the parliamentary elections June 2013 to face the task of improving public finances, efficiency in revenue administration and increasing the sustainability of the fiscal regime, through the implementation of reforms agreed by all political forces and public.

DOI: 10.5901/mjss.2013.v4n10p332