Compiling Albanian fiscal indicators following international standards

AuthorAnxhela Kasapi - Elton Stafa
PositionInstitute of European Studies, University of Tirana - Catholic University Our Lady of Good Council
ISSN 2410-759X
Acces online at
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Tirana-Albania Vol. 1 No. 3
January 2016
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
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.
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.

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