25 minutes agoHoti: The government has 210m euros too at the bank, instead of putting them in circulation it is devaling inflation
Periskopi(4 years ago)
(4 years ago)Former Prime Minister Avdullah Hoti is criticising the Kurti Government for holding 210m euros without any need in the bank rather than deciding on circulation at a time when inflation is high. For that, Hoti said government economists should have answers. Government banking balance on June 30, 2022. [...]
For that, Hoti said government economists should have answers.
The government's “Blanci banking on June 30th 2022 has reached nearly 600m euros, which is close to 7% of the Bruto (PBB) Interior Product. This is far beyond the necessary banking balance limit that the Government must have to be sufficiently liquid, which is about 4.5% GDP or about 390m euros. This high level of banking balance means that the government is holding about 210m euros without any need, which means are being devalated by high inflation. If these vehicles were to circulate into the economy, they would be multiplied by two to three times, thus increasing aggregate demand and resulting income, consumption and employment”.
In a very high inflation situation -- and closer to 600m euros of cash ready in accounts -- Hoti says it is unacceptable why the government does not index pensions, social schemes, salaries and farm subsidies according to the inflation rate.
Moreover, it does not temporarily remove the excise in derivatives to lower the price of derivatives and, subsequently, of many other products, the price of which is greatly affected by transportation costs. Why should the Government keep 600m euros in its bank account? I expect government economists to explain this for citizens”.
Hoti has written that this situation presents irresponsability and inability to lead the state a market economy state.
“This level of government banking balance also constitutes duty abuse, as the law gives Government the right to collect taxes, but retaining social and economic equality”.
