To create a clearer idea of how much costs the amount of interest paid to the budget state, it can be compared to some other fiscal indicators and GDP.

1.Cost of public debt vs. capital expenditures and Personnel expenditures


Source: Ministry of Finance
Data for 1993-2010 are facts figures
Data for the 2011 are forecasts taken from the consolidated budget of this year
Comments and Analysis: Open Data Albania (ODA)

In the point of view of the Albanian citizens the amount of interest paid for the public debt is comparable to the amount spent for capital expenditures (investments) or even more to salaries (wages) and contributions paid to employees of public administration. Inevitably a large amount of revenues goes to cover the cost of debt. In 1998, interest paid are much higher than the salaries (wages) and even more than invested, while in 2003 interest paid were at the level of investments made for construction of roads, schools and hospitals altogether. Consequently, the cost of debt is equal to the level of investments.

In the last three years, for the Albanians the cost of public debt costs more than 60% of the expenses made for maintaining public administration and this level was at 70% in 2011.  The figures are critical when compared with the level of capital expenditures (38% of investments in 2009-n, 62% and 58% in the next two years). In 2010 this figure is nearly 3 times higher than investments made in the sector of agriculture, education and health altogether and over 4 times higher in 2011.

2. Cost of Debt vs. Deficit and Investment as % of GDP and debt costs as % of total revenues


Source: Ministry of Finance
Data for 1993-2010 are facts figures
Data for the 2011 are forecasts taken from the consolidated budget of this year
Comments and Analysis: Open Data Albania (ODA)

Comparing to Gross Domestic Product (GDP) the cost of debt has been at the average of 4% for the period of 1993-2011. This indicator has reached the maximum at 1998 at the level of 8.7% of GDP and from that year has been substantially reduced by reaching the minimum recorded in 2006 and 2007 respectively 2.78% and 2.64%. In 2008, has been recorded an increase in the share of national income going to cover the interests paid and in 2011 this share was 3.6%. This level was higher not even than the Deficit as a % of GDP but also more than half of percentage of GDP spent for capital investments.



Source: Ministry of Finance
Data for 1993-2010 are facts figures
Data for the 2011 are forecasts taken from the consolidated budget of this year
Comments and Analysis: Open Data Albania (ODA)

If we look at the correlation between total revenues and the cost of public debt of state budget we will become aware of the fact that 16% of revenues are spent to pay interest. In 1998 was recorded the highest percentage for this indicator. Meanwhile, after a declining period in 2003-2007, the curve started to grow again 2008-2011. In 2010, the level of revenues that goes for interest paid is at the level of 12.8%, while in 2011 this percentage increases at the level of 13.2.

All the information is presented in the table below:



Source: Ministry of Finance
Data for 1993-2010 are facts figures
Data for the 2011 are forecasts taken from the consolidated budget of this year
Comments and Analysis: Open Data Albania (ODA)