Privatization revenues during 2010-2013

Privatization revenues are revenues from the sale of a public asset. According to the classification of Statistics Division of the United Nations, which is also the system used in our country, these revenues are not included in the ?Total Income? group, but are classified as part of the deficit financing. Open Data Albania has conducted a research on the incomes from the privatization process during the years 2010-2013 in our country, referring to the initial budget projections and actual performance for this item.

^{Source: Ministry of Finance
Processing and comments: ODA}

For 2013, despite several efforts to finalize same strategic privatizations, are predicted only 500 million revenue from this process. It shows a maturity in the process of drafting the budget, trying to project expenditures in the budget and debt indicators within the level of earnings from a normal flow of operation of public finances.

However, on the other hand, the non-inclusion of revenues from privatization in the budget presented for review and approval in the Assembly and the addition in Article 9 of the Law “For the Budget 2013” , under which privatization revenues over the amount anticipated in the budget are used by the Council of Minister, makes all the revenues over the budgeted level, not discussed at all in the Assembly, which constitutes the final link that seals finding financial resources and their use.

As it can be seen from the graph below, 2012 is the year with the highest level of actual income  from privatization for the period under consideration. From the 300 million predicted, they amounted to 880 million or about 3 times more. Meanwhile, the years 2010 and 2011 mark relatively low levels of income from privatization, respectively 411 million and 438 million. However,  it should be noted that these figures are still higher than the rates provided in the budget at the beginning of the year.

In total, revenues from privatization for years 2010-2012 have resulted in 1,737 million, making about 99% of the deficit of this period to be financed with debt, internal or external. Compared with previous years, especially the years 2000-2001 or 2004-2009, periods during which the total income from privatizations went to about 67 billion, revenue for 2010-2012 appear modest indeed. This is mainly for two reasons. First, most of the current strategic sectors is already privatized and secondly, failures in large privatizations provided as Albpetrol case.

^{Source: Ministry of Finance
Processing and comments: ODA}

^{If you want to read more on “Privatization revenues for the years 1993-2010” you may refer to the following article:}

http://open.data.al/sq/lajme/lajm/lang/sq/id/146/Privatizimet-ne-Shqiperi-1993-2010-nepermjet-shifrave

Law no 119/2012: http://www.minfin.gov.al/previewdoc.php?file_id=4445

Data for 2012 refer to the 11-month reporting “Fiscal indicators under the Consolidated Budget” by the Ministry of Finance.

Actual data for privatization revenues for the years 2010-2012 were obtained from the “fiscal indicators under the Consolidated Budget”:

^{http://www.minfin.gov.al/minfin/pub/treguesit_fiskal_14_12_m_2010_23_05_2011_2228_1.pdf
http://www.minfin.gov.al/minfin/pub/12_2011_treg_fiskalk_6_dt_28_05_2012xls_3445_1.pdf
http://www.minfin.gov.al/minfin/pub/printimi_5_4312_1.pdf}