Oct 28, 2024 – The Albanian government has proposed a budget of 8.2 billion euros for 2025, the largest in the country’s history. The draft budget estimates revenues of 754.6 billion ALL, or nearly 7.5 billion euros, which is an increase of about 510 million euros from this year. However, a budget deficit of 680 million euros is expected.
To support these plans, the government will issue a Eurobond worth 650 million euros and aims to reduce public debt. Only 16 million euros have been allocated for pension indexation, with 37 million euros set aside for year-end bonuses and 50 million euros for reconstruction.
The budget for municipalities is planned at 899 million euros. Local expenditures are estimated at 89.9 billion ALL, an increase of 13.2% compared to 2024. This means local spending will account for 3.43% of GDP, up from 2.9% last year and 2.3% in 2015. The unconditional transfer to municipalities will rise by 1.8 billion ALL, about 7.6% more than in 2024, and more than double the amount from 2015.
The Ministry of Health, Social Protection, and the Ministry of Infrastructure and Energy will receive the largest portions of the budget.
