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How much does corruption cost? 575 million euros were eroded by Albanian taxes
2024-12-10 16:12:49 / EKONOMI&SOCIALE
While the head of SPAK, Altin Dumani, was declared the anti-corruption champion by the US State Department, corruption remains a problem for Albania, with significant costs for the state budget and citizens' pockets.
But what is corruption in the economy?
It is considered a destructive phenomenon, which is opposed to the legality and principles of the economy. Also, it translates as a hidden tax on citizens and businesses.
But how much does corruption cost the state budget and Albanian citizens?
The research center Altax has estimated in a report that the cost of corruption is estimated at around 10% of public expenditures. In 2022, corruption has cost us 515 million euros, while it has increased to 575 million euros last year, in parallel with the increase in government spending.
The International Monetary Fund estimates that countries that collect more revenue are perceived as less corrupt.
Albania is the penultimate country in the region for revenue collection with only 27.2% of the Gross Domestic Product. We leave behind only Kosovo, while the countries with the highest level of income are Serbia and Montenegro.
But how does corruption affect the economy?
Let's look at a simple scheme. A high level of corruption leads to a misuse of citizens' taxes, causing public funds not to go to basic sectors, such as education and health, but to certain hands. Consequently, the budget will always need money and this will lead to an increase in the level of taxes, a burden that businesses will offload to citizens by increasing the prices of products and services in the market, putting pensioners and consumers in difficulty./A2
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Pse Berisha vijon t’i poshtërojë ish-të përndjekurit politikë?
Nga Namir Lapardhaja
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