Economic Role of Government Budget Revision in the Presence of COVID-19

Ledjon Shahini () and Perseta Grabova ()
Additional contact information
Ledjon Shahini: Department of Economics, Faculty of Economy, University of Tirana, 1010 Tirana, Albania
Perseta Grabova: Department of Finance, Faculty of Economy, University of Tirana, 1010 Tirana, Albania

Economies, 2023, vol. 11, issue 4, 1-14

Abstract: Fiscal policies are one of the most important instruments of government to guide the progress of the country’s economic development. They find significant use in cases where the economy is experiencing a period of recession, such as the current one caused by COVID-19. This study aims to assess the multiplier effects that budget revision has on the economy for the case of Albania, and more specifically by referring to the initial and revised budget scenario for the year 2020 which is characterized by significant changes caused by the presence of COVID-19. Referring to the multipliers from the input–output tables (IOT) the total effect that the state budget brings to the economy for a certain year is derived. From this paper, it appears that the budget restructuring that takes place during the year does not take into account the multiplier effect in the economy, but is mostly done for specific purposes related to certain government functions. In this context, it is very important that various options during budget revision are evaluated, concluding with the option that has the highest returns for the economy.

Keywords: COVID-19; fiscal policy; multiplier; national budget; public expenditures (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2227-7099/11/4/118/pdf (application/pdf)
https://www.mdpi.com/2227-7099/11/4/118/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:11:y:2023:i:4:p:118-:d:1124539

Access Statistics for this article

Economies is currently edited by Ms. Hongyan Zhang

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().