Albania has unveiled its draft budget for local authorities, allocating 89.9 billion leks for expenditures in 2025, a substantial 13.2% increase from the previous year. This budget aims to enhance local governance and financial independence as the country continues its journey towards greater decentralization.
Finance Minister Petrit Malaj presented the budget to the Commission on Legal Affairs, Public Administration, and Human Rights, noting that expenditures for local authorities will represent approximately 3.43% of Albania’s GDP, up from 2.9% in 2024.
Malaj highlighted that local authority revenues have seen significant growth since 2015, with an additional 3.6 billion leks, or 10%, expected in 2025. The draft budget also includes an average increase of around 8.2% in unconditional transfers to municipalities and a 3% rise for regional allocations compared to the previous year.
Support for local administrative salaries will continue, with additional funding aimed at addressing the financial impact of increasing the minimum wage. Furthermore, 2.2 billion leks are allocated for civil emergencies, including 200 million leks dedicated to enhancing the safety of water reservoir dams.
Malaj announced that property tax revenues are projected to reach 8.6 billion leks in 2025, further strengthening local authority resources. These budgetary measures are seen as crucial for fostering sustainable development and community resilience in Albania as it integrates more fully into the European economic framework.
