Identifier
Created
Classification
Origin
08TIRANA843
2008-11-26 13:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tirana
Cable title:  

AN ELECTORAL BUDGET FOR 2009

Tags:  PGOV ECON EFIN PREL AL 
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VZCZCXRO0275
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTI #0843 3311301
ZNR UUUUU ZZH
P 261301Z NOV 08
FM AMEMBASSY TIRANA
TO RUEHC/SECSTATE WASHDC PRIORITY 7630
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS TIRANA 000843 

SENSITIVE
SIPDIS

DEPT FOR EUR/SCE

E.O. 12958: N/A
TAGS: PGOV ECON EFIN PREL AL
SUBJECT: AN ELECTORAL BUDGET FOR 2009

SENSITIVE BUT UNCLASSIFIED - PLEASE TREAT ACCORDINGLY

UNCLAS TIRANA 000843

SENSITIVE
SIPDIS

DEPT FOR EUR/SCE

E.O. 12958: N/A
TAGS: PGOV ECON EFIN PREL AL
SUBJECT: AN ELECTORAL BUDGET FOR 2009

SENSITIVE BUT UNCLASSIFIED - PLEASE TREAT ACCORDINGLY


1. (U) On November 24, Parliament in principle approved the 2009
budget by a vote of 77-45, with all 77 yea votes coming from the
ruling party. After this initial approval, the budget must still be
formally approved by Parliament, but this is expected to occur on
November 26. At about 5 billion USD, this budget is the largest in
Albania's history, and a 20 per cent increase over the 2008 budget.



2. (U) The budget did not impress the opposition. The opposition
parties voted against it, calling it an "electoral budget" that
takes no measures to address the global financial crisis. The
opposition also claimed that it will hinder the activities of some
GOA institutions, it does not provide enough for property
compensation, and makes little headway in poverty reduction. On
November 25, the opposition presented an alternative budget which it
claims will address these needs; however, it was given short shrift
by the ruling party.


3. (U) An "electoral budget" may be an appropriate name as the
budget does contain plenty of capital projects such as road
construction, which will enable the ruling party to have many ribbon
cutting ceremonies in an election year. Pensions and salaries for
government employees will also increase a similar amount as in
previous years; however they will begin to see these increases
earlier (in May) rather than the traditional date of July 1.
(Comment: Presumably the date was changed so that voters will have
the chance to reward the government for their pay raises during the
June Parliamentary elections. End comment.)


4. (SBU) Comment: Many observers outside of the opposition have
also labeled the 2009 budget an "electoral budget." The GOA seems
to be trying to hold on to its grip in power by delivering, or
appearing to deliver, assistance and development in a tense
electoral year. However, while many details of the budget are still
unfolding, it does seem clear that high investment in road
construction is continuing while funding for health care and
education remain secondary concerns. It is difficult to predict at
this time how the budget will impact the 2009 elections, but putting
more money in people's pockets one month before the election can't
hurt too much.

WITHERS