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EU and WB warning: "Beware PPPs and state enterprises"

2024-05-03 13:48:02Biznes SHKRUAR NGA REDAKSIA VOX

EU and WB warning: "Beware PPPs and state enterprises"

The European Union and the World Bank suggest the Albanian government to be more careful and "controlling" as far as public finances are concerned. During the presentation of the third public finance management strategy, EU Ambassador Silvio Gonzato emphasized that increased transparency is essential for integration. According to him, the approach to changing the annual budget should change once and for all, through normative acts.

"The management of public finances is at the core of integration in the European Union because it affects several membership chapters. This shows how important the management of public finances is for good governance. We are of the opinion that we should return to the revision of the budget by means of procedures and not normative acts because the opinion of the parliament and the role of the SSC are important. It remains important to monitor PPPs or state-owned enterprises, in taxes, expand the tax base, fighting informality. Mid-term revenue strategy provides predictability for businesses.

As for the World Bank, transparency and accountability are essential.

"The main objective of public finance management is to improve the lives of Albanian citizens through better management and efficient use of resources. We do this by maintaining fiscal discipline through the collection of revenues and the management of public funds has a full involvement. Transparency and accountability, we must ensure that opportunities for corruption are eliminated as much as possible. During the last years, there has been shock and in moments of shock there has been a need for reallocations and these reallocations must be done quickly in order to respond to the citizens as quickly as possible".

While the Minister of Finance, Ervin Mete, announced, among other things, that the focus of this strategy will be the further improvement of fiscal and macroeconomic policies.

"Advancement in integrated strategic and budget planning, as well as increased monitoring and reporting; Increasing revenue mobilization and further improving systems for tax and customs management; Strengthening of budget implementation management and further implementation of international accounting standards; promoting the compatibility of systems for Internal Public Financial Control in accordance with EU practices; as well as, one of the innovations of this strategy, which has to do with: Integrating the elements of the green economy, targeting procedures and practices that encourage spending towards green activities". 

The Strategy for the Management of Public Finances, released for public consultation at the beginning of last month, is expected to be approved within the first 6 months of this year, to start further with its implementation phase.


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