Budget spending analysis in priority sectors in Albania 2008 – 2013

The financial crisis of 2008, which shocked most of the countries of the world, was transmitted in Albania as an economic crisis. Although our country was not affected by the financial crisis, due to a limited movement of capital and less integration on international financial markets, it had considerable negative consequences. In this context, the Albanian government should take measures in order that the situation not to precipitate. Even though, the government began to manifest problems itself being involved in a debt crisis. The conditions were such that the tax revenues declining year after year, could not finance government spending causing a deepening debt.

The purpose of this paper is to show how the budgetary policies have affected the economy during the crisis, even though the crisis has not yet passed. In this analysis we will deal sectors such as education, health and infrastructure considered as priority sectors by every Albanian government. For each sector we will see the importance that it gets from the government evaluated by weight which makes the budget. Also there will be some comparisons of the government performance on these sectors, with other countries in the region or best practices of European countries. We will finally draw some conclusions and recommendations.