ALBANIAN BUDGET STRESSES ECONOMIC DEVELOPMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600290166-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: September 29, 2011
• Sequence Number: 166
• Publication Date: February 28, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/29: CIA-RDP80-00809A000600290166-6
COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
CLASSIFICATION C0N"rID2:: Kn SRjr;Il :\.
CENTRAL INTELLIGENCE AGEMU~tg4 ~E REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
Albania DAI E OF
INFORMATIO41 94)
Economic - Fiscal
Daily newspaper
Tirana
22 Nov 1949
SUPPLEMENT TO
Albanian REPORT NO.
n't? 9000-T 00001^.! !!FT AIIOa .IItt4.l TH...Tlo.u oarl.la
or rxa artao nma nTxu rxa ?............ no.ua ... ro
r. a e ..o aa.u .mom. rta n..uio. TH. .avu.no. I
.1Ta.o iv.oourno. Ti iiii IT i aa.u Tao ..
The following table shows how the Albanian national budget has increased
since the financial year 1945-46 (in millions of lek):
Apr-Dec
1='4 t 1946-47 1947 1949
Income 1,233 2;261 4,1o6 5,553 6,550
3xpendiIures
Economy 13 415 180 2,020 2,202
Education, culture al 1%4 217 358 492
Public health 83 232 150 464 643
Army 742 784 1,158 1,o66 913
Administration 7.42 147 494 683 776
Listed expenditures total less than in^ome in each case]
The following table gives the percentage of increase during the same years:
Apr-Dec
1945-46 1946-47 1947 12 1949
Income loo 133 341 450 531
Expenditures
Economy 1 18.3 26.9 36.3 33.6
Education, culture 7.3 5.4 5.2 6.4 7.5
Publin health 6.7 10.2 3.6 8.3 9.8
Army 60.i 34.6 27.8 19.1 13.9
Administration 11.5 6.5 12 12.2 11.8
CLASSIFICATION CONFIDENTIAL
STATE JAJ NAVY NSRS DIS'RRII7BUTION
ARMY AIR f?61 i~ ~ I __,_ _
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'(Pr'T 0F2 iiT
The following tax table shows how: the :-f tax ?,-:_?te as been sh'.fted
from the working c1acs^o and the poor to ti and the rich since
the war (income and taxer expressed in 1,1,
Population
Category Year Up to 20,000 Up to Up to 100,000 Uu to 300,000
Peasants 1938 5,000 5 0 ;.,,,?1'0 30,000
1948 600 h woo 19,900 i29900
Merchants 1938 ,
700 0;752 S,UGO 123,000
i o .760: ,38c: 21,0 50 159,080
Landowners 1538 - 32_? 2,656 21,391
1946 1,720 5 44~ 1.,,ihn 169,440
Artisans 'rG 2,752 co() ;23,000
1?48 1,261,800 200 107,200
As a result of the improv_u:r-r,t in rgricult-cal lror,uctien and incomes, the
farm population provided 0.6 percent of the total nati,,nal revenue for the 1947
budget year (April to December) and 1.2 percent for 1;4f, and according to the
plan, will provide 1.3 :e: cent in . P .teeen -9:15 and :91L, the peasantry pro-
vided an average of 23.75 percent of all revenues in direct duties and 1a:_es. Of
this sum, the tithe brought in 3,:.33 percent, i.r!port duties 23.22 percent, and
various taxes 31.45 percent Ltnese do not total 100 eercenJ.
At the be0inndn of a proper ey,;Lam of ta:cation was developed on the
basis of Soviet experience.' it provided for proper payments for services per-
formed by the state :'o. the benefit of the individual, and replaced the old sys-
tem of municipal and coanewlal taxes, road taxes, etc., that had long burdened the
working masses.
The reorganization of enterprises on a socialist basis, which took place in
1J37, made it possioie !'or the state to accw,,Liare a surplus on the basis of
scientific planning. In 1947 the skate accumulated 477,675,rk' lek, or 12.9 per-
cent LsicZ of the total budEc-"; in 1948 it accumulated 1,C22,4l55,000 lek or 19.3
percent /si); and in S : 1 it raved _ , 735, 3' 3 ;' nC i_ ?L? pr 26.4 In July 1949 the fist State Loan for the Development of the Vtbanian Economy
and Culture was announc~1. The 'can was ,core than successful; 305 million lek in-
stead of the planned 250 million were subscribed. This load made possible the
fulfillment of the "wn-Year Plan, including thr ._,onetruction of the te=tile and
sugar combines.
Prewar and postwar budget expenditures are contrasted in the following table
(in thousands of lek):
1933-3',
Fercent
134`
Percent
Total Expenditures
Royal roads, payments to the
447,120
1.00
6,550,000
100
royal family, and t.e palace
11,200
2.5
-
-
Economy
27,176
6.o_
2,42,363
33.6
Education, culture
54,768
12.1,
492,438
7.5
Welfare, health
l?,Q64
x,760
9.8
Army
139,4
i.l
3,721
13.9
.administration and Minist-y of
Interior
Se ,552
40.1
776,02'
11.8
L ioted expenditures tots? ..1-!se then the respective totals gin_]
CON1- IDLii iIAL
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distributed as
follows
(in l.cccents
Sector
Dec 43
2ec J!6
State
P:.9
8h.6
Cooperative
-
14.2
Private
1).02
i.:)s
of the to'
D?c 4 Dec 43 Sep 1,
35.6 72.2 56.3
13.3 26.4 2.2
1 1.36 _.01
The State Bank establ_,h~d relations first iith the USSR and the People's
Democracies, and now has regular contacts ?,ith the baths of 45 different countries.
Savings deposits hays increaced ;n follows since the war (1945 = 120): 212
in 1946, 1,676 in 1;4h7, 3,791 in 1948, and 3,093 in August 1949.
The ISIS (State Insurance Institute) new provides fire insurance insurance
against damage from natural disaster, travel accident insurance, and life in-
surance. The plan for 1949 calls for 10.6 percent more fire insurance and 93 per-
cent more accident insurance thar in 108?
The Teknilaun Financier 11 Janar, a profer,sionel school for training fiscal
personne-, has 2l1 students.
The Albanian buL'.aet for 1049 presupposes credits from the USSR, including
machinery and capital equipment. Soviet aid P.nd aid from the People's Democracies
make up 36.9 percent of the Albanian budget.
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