Compiling Albanian fiscal indicators following international standards

• Author: Anxhela Kasapi - Elton Stafa
• Position: Institute of European Studies, University of Tirana - Catholic University Our Lady of Good Council
• Pages: 454-464

ISSN 2410-759X

Acces online at www.iipccl.org

Balkan Journal of Interdisciplinary Research

IIPCCL Publishing, Tirana-Albania Vol. 1 No. 3

January 2016

454

Compiling Albanian fiscal indicators following international standards

Anxhela Kasapi

Institute of European Studies, University of Tirana

Elton Stafa

Catholic University Our Lady of Good Council

Abstract

The existence of a sound statistical framework providing reliable, timely and comparable

data is an indispensable condition for the delivery of good and efficient fiscal policies.

The current global economic and financial crisis is having major implications for fiscal

accounts, thus highlighting the importance of good statistics.

The aim of this paper is to give a presentation of Albanian fiscal indicators following

international standards and to identify relevant differences with national standards

data. We have compiled government finance statistics for the period 2005-2014 based on

International Monetary Fund Manual of 2014 (GFSM 2014). We believe that findings of

this research will be relevant to understand the importance of adopting internationally

accepted standards of fiscal reporting. The main results are presented in terms of

comparison between the fiscal indicators resulting from following national standards

and the ones that would result from the adoption of the GFS framework. We have

identified methodological differences for the considered fiscal indicators. Furthermore,

the treatment of government arrears to the private sector constitutes a major source of

difference between the two standards. However, in the case of Albania payment arrears

are to be mostly related to public financial management issues rather than

methodological ones.

On the light of our work, we believe that the gradual adoption of GFS framework in our

country will improve the quality, reliability and comparability of statistics produced

and will be a powerful tool for proper analysis and efficient assessment of fiscal policy.

Keywords: Fiscal Reporting, Government Finance Statistics, National Standards,

General Government Deficit.

Introduction

It is generally accepted that the existence of an adequate fiscal statistics reporting

framework providing accurate, timely and reliable information is of crucial

importance to policymaking and managing fiscal risks. Taking data-driven-informed

decisions requires the availability of adequate information and the willingness to

build an adequate system that would generate such information. While the recent

global crisis was not-primarily-rooted in public finances fundamentals, in many

countries the latent gaps in fiscal reporting transparency practices and procedures

have greatly exacerbated its effects and/or postponed the country’s economic recovery.

As a result, improving the quality of public finances has become a key challenge for

policy makers in developed and developing countries as they strive to adopt and

implement fiscal consolidation strategies in response to the global economic crisis.