Standard & Poor’s has released the latest report on the performance of the Albanian economy for the past months which highlights that reforms undertaken by the government have resulted positive, by increasing state budget revenues. The report evaluates the reform in the energy sector as successful, saying that sovereign credit risk factors have remained at the same levels.
During 2015, revenues to the state budget increased due to the collection of energy bills and other taxes, says Standard & Poor’s report. According to Standard & Poor’s, “the Albanian government is strengthening the fiscal institutions and the management of this sector and the reforms undertaken so far in the field of energy, pensions and tax administration have been successful in increasing revenues. One of the most successful reforms has been the one in the energy sector, whose positive results decreased the pressure of this sector towards the state budget”.
The report says the increase of revenues will support new investments in the energy field, especially in hydropower plants and in the TAP projects during the period 2016-2018. According to the report, the fiscal improvements will be followed by higher rates of economic growth in the upcoming months. In turn, the slowdown of the implementation of reforms may hamper the economic increase.