The Albanian government’s $4.7 billion subsidy for “cheaper childcare” has been almost eaten up by tax hikes, just over a year after it was first rolled out, the latest inflation figures show.

In a development that will support the arguments against the recommendation of the Productivity Commission to continue increasing subsidies, inflation data shows that out-of-pocket childcare costs fell by 13% in the first three months after July 1, 2023, when the extra assistance began.

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