THE ACHIEVEMENTS OF THE NINE-MONTH GOVERNMENT
Assessing the activity of the Democratic Government calls for realism — its activity to date — optimism for the future —
December is the ninth month in which the Democratic Government has been active. The period represented by next month is a short one, but, despite the difficulties in referring to its immediate objective reality. In assessing the government’s activity, anyone who takes part in doing so faces two alternatives: either to be realistic, or to deny everything, displaying symptoms of a mental illness called delusions of grandeur. Since the second alternative is the property of the socialists, we have no choice but to assess the government’s activity within the spectrum we mentioned above, in light of its objectives. Naturally, not all of it, because that is impossible, but with a focus on enterprises, selecting the «Achilles’ heel»: the economy.
Industry completely paralyzed, agriculture adjusting to barren land that had served as pastureland for livestock, the entire workforce unemployed, with little prospect of recovery on the basis of an absurd and destructive law, inflation threatening to become hyperinflation: prices, like skilled mountaineers, aiming for the summit of Everest; and turning the kulluk into an electric cart. In this sense, these government officials’ acceptance of the task is the sole indication of patriotism, a reason to support their work. The government set as its task putting
one lek taken from the funds earmarked for work, the funds allocated from wages or from the poor strata in cities or villages.
3. Almost all state-budget expenditure on subsidizing 80 percent of payments to enterprises was cut, as was expenditure on subsidizing their losses, which together with price subsidies in 1991 amounted to 18.8 percent of that year’s gross domestic product. In 1992 they amounted to only 7 percent of gross domestic product (GDP).
4. Efforts were made to increase revenue by applying a strict new fiscal system. The domestic revenue target under this system has been achieved in full, at 100 percent.
Also, under the agreement with the IMF, an important objective had been set: the use of domestic credit provided by the banking system to finance the government’s budget expenditures, which in 1992 had taken on an inflationary character. According to the information available so far, this objective is expected to be successfully met and will reduce credit taken from the bank by around 12 percent, compared with the 16 percent forecast. These measures have led to the stabilization of the economy’s ailment: inflation.
Halting the decline in industrial production and
... for the measure of 80—grind, based on a Western decoupling law, inflation that was meant to become an installation: prices that, like good mountaineers, were aiming for Mount Everest; you turn the cudgel into an electric chair. In this sense, the acceptance of the task by these government officials is an indication of patriotism and love for being the people’s majority. The government set as its task bringing inflation under control, which has weighed on the economy. Bringing inflation under control means, first and foremost, bringing the state budget deficit under control, that is, controlling its expenditure. At the end of 1991, the state budget deficit was estimated at 47.5 percent of gross domestic product, or around 7 billion lekë. At the end of March 1992, that is, at the beginning of the Democratic Government’s activity, it was 55 percent of gross national product, or [unclear] for the first two months of 1992, around 3.3 billion lekë. As part of this programme, Minister Kuraizok [?] envisaged a drastic reduction in the budget deficit by the end of ’92, as well as improving the structure of budget expenditure, pursuing an increasingly social policy in setting the main levels of cuts to ineffective spending, and establishing a more efficient system to combat it in the areas of greatest need, such as social assistance, as explained in the previous document. In particular, in particular, at 10 percent of GDP. The budget deficit has now been reduced to 15 percent of GDP, thereby achieving one of the main objectives of the government’s economic programme and its agreement with the Monetary Fund. The achievement of such a task is due to the implementation of its measures. 1. Cuts of 10 percent, compared with the previous year, in personnel in the central administration and other budget-funded institutions, to combat bureaucratic structures in a large number of ministries, [and] the dismantling of two important sectors among the population. 2. A considerable reduction in spending on national defence, with it being halved, in order to restructure it and increase it on the basis of a principle that would allow it to be separated effectively; in such areas, the banking system was used to finance budget expenditure during the first six months of 1992, which was inflationary. From the 16 data received so far, it appears that achieving these objectives has been successful, including reducing the budget deficit during the period to 16 percent, in attaining these objectives. These measures have helped stabilize the economy’s enemy: inflation. Stopping the decline in industrial and agricultural production is another objective of the government’s programme. Their further decline has not only been halted, but industrial production has recorded an increase of 8 percent, while in agriculture, the result of land distribution, çelësim [?] of strengthening të çorovës [?], has increased by 21 percent. Surely, this production will grow even faster as a result of the next important step taken by the government with the privatization and restructuring of farms. The government undertook to restore public order and calm, and it has achieved this. This is seen and acknowledged by everyone. This does not mean that crimes do not occur, but the government is doing what it can: uncovering them. The government committed itself to fighting corruption and economic speculation from the first day of its activity. Its mechanisms, such as the State Audit, the Financial Police, etc., have become sworn weapons against these phenomena. The government committed itself to pursuing a foreign policy based on winning the goodwill of the countries of the world and their organizations, and this has been achieved. All senior state officials and leaders of various economic and financial institutions and organizations have highlighted the progress of reform in our country, even compared with other Eastern countries, and have expressed their full support. Naturally, every minister has achieved their own results, as part of an undeniable fact: the success of the Meksi Government. A review of the government’s nine-month activity makes one optimistic and leads one to predict its overall success over four years.