A very important indicator to judge on the public debt and the payment ability of its cost of borrowing by the state budget is the cost of debt per capita. It is calculated as the ratio of the amount of interest to be paid in a given year to the population of that year. The following chart gives a clearer picture an overview of the cost of debt per capita, in the years 1998-2012
Source: Ministry of Finance , INSTAT
Comments and Analysis: Open Data Albania (ODA)
As in the years 1998-2010 changes in the population were relatively low, the main cause of fluctuations in the cost of debt per capita have been the interests expenditures.
From the graph, in the years 1998-2001, there is a steady decline in the cost of debt per capita, from 11,724 Albanian Lek to 7.710 Albanian Lek in 2001 or round 34% less. The years 2002-2007, are characterized by a public debt cost per capita that fluctuates more or less in the same values, excluding 2003, in which the cost of debt per capita rose 20% compared with a year ago. Meanwhile, in the years 2008-2012, there is a steady increase in the cost of debt per capita, caused mainly by the increased debt stock, especially in the years 2008 and 2009.
Thus, in 2008, an average family of 4 persons pays for the public debt a cost of 39,504 Albanian Lek per year; in 2010 this figure goes to 52,088 Albanian Lek, while in 2012 it is at the level of 70,064 Albanian Lek. If we bear in mind that not all family members are directly taxpayers and contributors to the budget revenues, the average amount paid by each taxpayer in the year 2012 to meet the cost of public debt forecasted is higher than 17,516 Albanian Lek.
Meanwhile, we should mention that the figure of highest cost per capita debt in 2011 has affected the smallest number of population used in this analysis based on preliminary results published of the 2011 Census of INSTAT
The following chart gives the growth rate of two factors that determine the amount of public debt cost per capita: the cost of debt and population
Source: Ministry of Finance, INSTAT
Comments and Analysis: Open Data Albania (ODA)
As can be seen from the graph, until 2010, the performance cost of public debt per capita is explained mainly by the raise or the decrease of the cost of debt, while the population becomes the determining factor for this indicator was only in 2011
All the information is presented in the table below:
Source: Ministry of Finance, INSTAT
Comments and Analysis: Open Data Albania (ODA)
Data for the interest during 1998-2010 is taken from the Actual Budget
Data for the interest during 2011 is taken from the Revised Budget.
Data for the interest during 2012 is taken from the Initial Budget
Data for the population of 2011 is taken from the initial results published on October 1, 2011. In 2012 is assumed the same level of population as in 2011.