With the fiscal performance analysis for the fiscal period 1996 - 2016, we aim to show whether the public expenditures have been able to meet the budget target of revenue collection according to the government's objectives, and whether progress is made towards achieving the goals politics of left and right governments. The study was conducted through many sources of information, where data and information were crucified to verify accuracy. The statistics report and analysis has gone through the stages of (a) statistical survey, (b) aggregation of data, and (c) processing and analysis. The main source is the data of the Fiscal Bulletin of the Ministry of Finance and Economy, and Fiscal Programs of Governments of 20 years. Other sources used are documents from the Institute of Statistics, Annual Reports of the Bank of Albania, Taxes, Customs and other central institutions, institutes and local and foreign organizations. Views and comments from public finance experts, scholars and academic staff, or interested parties are welcomed to reach the most accurate assessment based on typical methodology and correct data. The study report is divided into three parts. For comment on the report, you can contact altax@altax.com . JEL codes: H20, H51, H54, H63, H71, Keywords: labor taxes, capital taxes, fiscal productivity, Albania, taxes, VAT, budget incomes, public spending The authors' electronic address: aurelaaliaj@altax.al and edigjokutaj@altax.al The publication you can download HERE !

1. Aurela Gjokutaj
Eduart Gjokutaj
ALBANIAN FISCAL PAPERS
AFP-2018/02/02 - ALTAX
Albanian Budget Performance
1996 - 2016

2. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 1
Albanian Budget Performance
1996 - 2016
ALTAX Center
Fiscal Papers,
No. 2018/02/02
www.altax.al
altax@altax.com
Date 15.02.2018
Tirana, Albania
Fiscal statistical data from Albanian budget indicators 1996 -2016, as well as
comments on their share, structure and impact on the economy and the well-
being of citizens, according to the importance and level of governance

3. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 2
Albanian Budget Performance 1996 - 2016
Fiscal statistical data from budget indicators, as well as comments on the share, structure and
impact of the economy according to the importance and level of government
SUMMARY
The Albanian Taxation Association (ALTAX) introduces this statistical paper with comments on government budget
revenues, expenditures and investments made, enabling comparative performance in these two decades that
summarize budget performance information. The data and comments presented in this text may serve for scholars
and experts of the economy and public finances by drawing their conclusions when analyzing the performance of
statistics over the last 20 years.
This study describes progressive research by ALTAX experts and is published to receive comments and encourage
debate.
The purpose of presenting this paper helps achieve a fuller and clearer perception of fiscal performance by
modeling spending and revenue, as well as to provide elaborate information for system analysis and in support of
proposals for concrete, legislative interventions to improve the public finance system.
This paper is prepared by ALTAX experts in the series of thematic fiscal summaries, with the aim to be as a source of
discussion for all those interested or having an inseparable connection with the tax and public finances on the
implementation of their practices. The author is © ALTAX Center and anyone who will use this text is required to
mark the authorship as a reference in its publications.
The document can be found on the website http://altax.al/al/publikime-te-altax
If you have requests and altax@altax.al

4. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 3
© 2018 ALTAX FP-2018/02/02
This study describes the ongoing research by ALTAX experts and is published to receive comments and to
encourage debate on the government budget, economy, investments, taxes and welfare of Albanian
citizens for the period 1996 – 2016
Prepared and distributed by Aurela Gjokutaj, Eduart Gjokutaj
Abstract
With the fiscal performance analysis for the fiscal period 1996 - 2016, we aim to show whether the public
expenditures have been able to meet the budget target of revenue collection according to the government's
objectives, and whether progress is made towards achieving the goals politics of left and right governments.
The study was conducted through many sources of information, where data and information were crucified to
verify accuracy. The statistics report and analysis has gone through the stages of (a) statistical survey, (b)
aggregation of data, and (c) processing and analysis.
The main source is the data of the Fiscal Bulletin of the Ministry of Finance and Economy, and Fiscal Programs
of Governments of 20 years. Other sources used are documents from the Institute of Statistics, Annual
Reports of the Bank of Albania, Taxes, Customs and other central institutions, institutes and local and foreign
organizations.
Views and comments from public finance experts, scholars and academic staff, or interested parties are
welcomed to reach the most accurate assessment based on typical methodology and correct data. The study
report is divided into three parts.
For comment on the report, you can contact altax@altax.com .
JEL codes: H20, H51, H54, H63, H71,
Keywords: labor taxes, capital taxes, fiscal productivity, Albania, taxes, VAT, budget incomes, public spending
The authors' electronic address: aurelaaliaj@altax.al and edigjokutaj@altax.al
The publication you can download HERE !

5. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 4
CONTENT
Introduction Page 5
1.
1.1
Budget Revenues
Gross Domestic Product. Inflation
Budget revenues in Albania
Page 7
Page 9
1.2 Budget revenues from tax and customs Page 10
1.3 Economic growth, inflation and budget revenues performance Page 14
1.4 Ratio of budget revenues and their subcategories to GDP Page 15
2.
2.1.
Public expenditures
Public expenditures according destination
Page 17
Page 17
2.2. The administrative cost of the government budget Page 19
2.3. Share of public expenditures to GDP Page 20
2.4 Ratio of public expenditures to budget revenues Page 21
3.
3.1.
Performance of fiscal basis
Performance of budget revenues, according to the fiscal base
Page 25
Page 25
3.2. The structure of revenues from taxes and customs and their tendencies Page 27
3.3. Share of taxes to GDP Page 29
Conclusions Page 31
ANNEX Page 33

6. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 5
INTRODUCTION
The government budget shows the government's proposed revenues and expenditures for a financial year
that passes by the legislature and is approved by the Albanian Assembly as calculated and presented by the
Minister of Finance of the country. With the fiscal performance analysis for the fiscal period 1996 - 2016, we
aim to show whether the public expenditures have been able to meet the budget target of revenue collection
according to the government's objectives, and whether progress is made towards achieving the goals politics
of left and right governments.
Fiscal policies and fiscal administration can be considered as a combination of puzzle parts to complete the
whole. The administration of tax obligations, built on the columns of procedures and rules through functional
organization, has attempted in the last 10 years to approach the principles of good governance and in
response to taxpayer requirements. Over the years, tax administration is less intrusive in business decision-
making. Businesses and individuals have developed activities more independently and are more reluctant to
make decisions about the administration.
This analysis is worth introducing the allocation of budget items by destination, but also variance and analysis,
as well as evaluating realistic results from budgeted values.
Another goal is to give scholars practical skills in reconciling the budget revenues realized with the value spent
by governments through variances in different items trying to conclude who has affected the budget deficit
and how much it has been affected for the future.
This text focuses on the use of performance measurement of the public budget. Based on a national analysis
of government revenues and expenditures over 20 years, it is noted from the performance analysis for a range
of budget items to look at the tax destination that each of the Albanian citizens pays in the budget.

7. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 6
Clarification of terms
1 Labor taxes The tax on wages and social and health insurance contributions
2 Capital taxes Profit tax, Personal Income Taxes (without wage tax), gambling tax and small
business tax
3 Taxes on consume Value Added Tax, Excise tax and Custom duties.
4 Local taxes The Local taxes, and property taxes
5 National taxes The national taxes, the road tax (2002 - 2011) and the solidarity tax (1998 -
2008)
6 Non-tax budget
revenues
The revenues coming from receipts from budget institutions, fees collected
from their services, and transfer of profit from the Bank of Albania
7 Social
expenditures
The budget expenditures for special funds and other expenditures
(unemployment, economic assistance and compensation)
8 The administrative
cost of budget
The ratio between operating and administrative expenses with budget
revenues
9 GDP Gross Domestic product
10 GTD General Taxation Directorate
11 GCD General Customs Directorate
12 VAT Value Added Tax
13 ST Sales tax

8. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 7
1. Budget Revenues
Gross Domestic Product and Inflation rate
Domestic production in Albania for the period 1996 - 2016 has an increase of 3.3 times1. GDP in
1996 was ALL 346.4 billion, and 20 years later it was added to the value of ALL 1.5 trillion. An
increase in these macroeconomic dimensions comes from contributing to the economy of the
construction sector, the services sector and the trade sector, where the difference comes from
the decline of the share of the agricultural sector in the economy and the growth of the above
sectors2.
By comparing the value of GDP between the years that limit the period 1996 - 2006, the growth
of domestic production is 2.5 times. If we make a comparison for the period 2006 to 2016, the
domestic output growth is 70 percent. From the analysis of each of the decades of economic
development, the economy has expanded with larger dimensions in the first decade (1996 -
2006). While in the second decade this development has shrunk by 3 times less due to a major
deterioration mainly due to the lack of a clear model for implementation in the economy, but
also due to the increased presence of political corruption and lack of investment public and
private long-term for strengthening the technical and human capacities in the country.
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GDP AND INFLATIONPERFORMANCE, 19962016
ECONOMIC TRENDS INFLATION
1
2016 compared to 1996
2
http://www.instat.gov.al/al/publikime/librat/

9. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 8
The graph shows that in 1997, when GDP declined by 10.8%, inflation grew by 42.1%. This is a
historical growth of inflation in the history of the Albanian state.

10. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 9
Box 1 Tax rates inAlbania,1993 -2017 in%
1
1993
1994
15, 20 ¹ 30, 40, 50 ³ 10, 15, 20, 25, 30 ⁴ 3, 5, 6, 8, 10 ⁵ 42.5 ⁶
NOthreshholdforsalestax
Wage nontaxable if <ALL4.000
Tax onSmall businessassessedinvalorumforspecificeconomicactivities
2 1995 15, 20 30, 40, 50 5, 10, 15 ⁴ 3, 5, 6, 8, 10 45.9 ⁶ Wage nontaxable if <ALL7.000
3 1996 12.5 ² 30, 40, 50 3, 5, 10, 15, 20 ⁴ 3, 5, 6, 8, 10 45.9
VATintroduced
ThreshholdforVATregistration,if turnover>ALL2million
Wage nontaxable if <ALL10.000
4 1997 12.5, 20 ² 30, 40, 50 1, 2, 3, 5, 10, 15, 20, 25, 30 ⁴ 45.9
5 1998 20 30, 40, 50 0.5, 1, 2, 3, 5, 10, 15, 20, 25, 30 45.9
6 1999 20 30 ³ 0.5, 1, 2, 3, 5, 10, 15, 20, 25, 30 45.9
7 2000 20 25 ³ 0.5, 1, 2, 3, 5, 10, 15, 20, 25 ⁴ 45.9
Wage tax calculatedaccordingtoprogressive ratesandthreshholdamount
ThreshholdforVATregistration,if turnover>ALL8million²
8 2001 20 30 0.5, 1, 2, 3, 5, 10, 15, 18, 20, 23, 25 ⁴ 45.9
9 2002 20 4, 5, 30 ³ 0.5, 1, 2, 3, 5, 10, 15, 18, 20, 23, 25 45.9, 41.9 ⁶
10 2003 20 4, 5, 25 0.5, 1, 2, 3, 5, 10, 15, 18, 20, 23, 25 41.9
11 2004 20 3, 25 ³ 0.5, 1, 2, 3, 5, 10, 15, 25, 30 ⁴ 41.9
12 2005 20 1.5, 23 ³ 0.5, 1, 2, 3, 5, 10, 15, 20 ⁴ 41.9
13 2006 20 1.5, 20 0.5, 1, 2, 3, 5, 10, 15, 20 41.9, 32.9 ⁶
14 2007 20 1.5, 20 10 ⁴ 32.9
15 2008 20 10 ³ 10 32.9
16 2009 20 10 10 32.9, 27.9 ⁶
ThreshholdforVATregistration,if turnover>ALL5million
Minimumwage ALL18.000⁶
17 2010 20 10 10 27.9
18 2011 10, 20 ² 10 10 27.9
19 2012 10, 20 10 10 27.9
20 2013 10, 20 10 10 27.9
21 2014 20 ² 15 13, 23 ⁴ 27.9
Abolitionof VATrate 10%,reducedformedicinesandhealthservice,
startingfrom2015.
Progressive wage tax rates
22 2015 20 ² 15 13, 23 27.9
NEWVATlawintroduced
Abolishedthe Small Businesstax
23 2016 10, 20 15 13, 23 27.9
24 2017 6 ², 10, 20 15 13, 23 27.9
ReducedVATrate 6%fortourismaccomodation.
ThreshholdforVATregistration,if turnover>ALL2million,startingfrom
April,1st2018
Source: Assamble of Albania
¹Law7676,02.03.1993
³Law7677,03.03.1993;Law8438,28.12.1998;Law8711,15.11.2000;Law8979,12.12.2002;Law9326,06.12.2004;Law9431,13.10.2005;Law9716,16.04.2007;Law9766,09.07.2007;
⁴Law7786,27.01.1994;Law7897,02.02.1995;Law8091,21.03.1996;PresidentDecree1673,20.12.1996;Law8438,28.12.1998;Law8711,15.11.2000;Law8841,11.12.2001;Law9766,09.07.2007;Law177/2013,28.12.2013
⁵Law7679,03.03.1993
⁶Law7703,11.05.1993;Law8889,25.04.2002;Law9600,27.07.2006;Law10070,05.02.2009;D.C.M.522,13.05.2009
TaxonSmall
Business
Social and
Health
Contribute
CommentsandclarificationsNo Years ProfittaxSalesTax
Value
AddedTax
Personal/Individual Income Tax
²Law7928,27.04.1995;Law8240,16.09.1997;Law10363,16.12.2010;Law182/2013,28.12.2013;Law92/2014,24.07.2014;Law71/2017,27.04.2017;D.C.M.36,17.01.1998;D.C.M.727,28.12.2000;D.C.M.953,28.12.2014;
D.C.M.652,10.11.2017
ReducedVATrate 10%formedicinesandhealthservices
ThreshholdforVATregistration,if turnover>ALL5million²
Wage nontaxable if <ALL10.000
Wage nontaxable if <ALL14.000

11. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 10
References
ALTAX, Dokumente Fiskale 2013, Analiza e treguesve buxhetorë për periudhën 1996 - 2012
Malgwi A Abdullahi, O. Unegbu Angus, Budget in Nigerian Public Sector: Need for Balanced Scorecard
Perspective
Ministria e Financave, Statistika Fiskale të Qeverisë, 2004 – 2008
Ministria e Financave, Treguesit e borxhit me instrumenta Financiare, 2007
Checherita Cristina, Rother Philipp, ECB, The impact of high and growing government debt on economic
growth: an empirical investigation for the Euro area
Kalaja Edlira, UT, Rëndësia e borxhit publik në ekonomi dhe vlerësimi I qëndrueshmërisë së tij: Rasti I
Shqipërisë
Banka e Shqipërisë, Raporti Vjetor 1996 – 2016
Qendra Shqiptare për Kërkime Ekonomike, Revista Ekonomia dhe Tranzicioni, 1997
Kadiu Dorina, UAMD, Roli i borxhit publik mbi rritjen ekonomike: Analizë empirike për rastin e Shqipërisë
në vitet 1992 2012
Schaeffer Michael, WB, Public Sector Management Thematic Group, Framework for Effective Local
Government Finance, 2005

12. Law. Fiscal. Transparency
www.altax.al Albanian Budget Performance 1996 - 2016 11
Performance of Albanian Budget
Analysis of budget indicators for the periods 1996 – 2016
ALTAX Center
Fiscal Papers,
No. 2018/02/02
www.altax.al
altax@altax.com
Date 15.02.2018
Tirana, Albania
The Albanian Taxation Association (ALTAX) introduces this statistical paper with comments on
government budget revenues, expenditures and investments made, enabling comparative
performance in these two decades that summarize budget performance information. The data and
comments presented in this text may serve for scholars and experts of the economy and public
finances by drawing their conclusions when analyzing the performance of statistics over last 20 years