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Processes such as globalization and integration, individuals’ increasing reliance upon technology, limited vital resources in order to ensure normal life increase the complexity of our world and make the State’s economic involvement compulsory. The theory of the use of fiscal policy for promoting economic stability is by now about forty years old. It may be time to ask to what extent fiscal policy has been used in practice as a tool for economic stabilization in Albania; how useful fiscal policy has proven to be, and finally what have been the main obstacles to fiscal policy as a means of economic stabilization. Currently Albania is facing enormous financial problems due to extremely low rates of employment, high levels of undeclared work, low financial discipline and a lack of equity and efficiency in tax matters. In the case of Albania, fiscal policy helps to accelerate the rate of economic growth by raising the rate of investment in public as well as private sectors and the aim of this paper is to analyze various tools of fiscal policy, which should be used to do not affect the consumption, production and distribution of wealth.

Fiscal Policy as a tool of Economic Stabilization - the case of Albania