Albanian parliament approves controversial 2025 budget for vital sectors
- The Albanian parliament approved a draft budget for 2025 with planned expenses of 822.7 billion lek against 754.6 billion lek in revenue.
- The budget aims to foster economic growth and fiscal consolidation, with an emphasis on funding key sectors.
- This budget approval is a significant step for Albania's economic strategy aimed at improving citizens' well-being and reducing public debt.
On December 4, 2024, the Albanian parliament approved the 2025 draft budget aimed at promoting economic growth and fiscal consolidation. The decision was reached after a voting outcome of 75 votes in favor and 24 against. The budget outlines planned expenses of 822.7 billion lek against total expected revenue of 754.6 billion lek, focusing on sectors such as education, healthcare, infrastructure, digital services, and agriculture. It emphasizes the funding of the European Union Growth Plan for the Western Balkans, gearing it towards accelerating the nation's economic and social convergence. The budget aims to satisfy two crucial objectives: to ensure sustainable economic growth that promotes employment and enhances the well-being of all Albanian citizens and to maintain a fiscal consolidation approach that reduces public debt while upholding positive macroeconomic and fiscal parameters. To achieve this, the government targets a public debt level of 55.8% of GDP for 2025, reflecting a minor reduction from 56.3% available in 2024. In addition to emphasizing fiscal responsibility, the approved budget allocates 162 billion lek or approximately 6.2% of GDP for planned public investments, which is significant for supporting and expanding key areas such as tourism, agriculture, and infrastructure. The government is also committed to achieving a positive primary balance while ensuring the net borrowing of the budget remains aligned with capital expenditures managed by the central government. Moreover, while there are provisions for indexing and bonuses for retirees, there are no salary increases planned under this budget initiative, reflecting a focused approach on fiscal sustainability and economic growth amid ongoing economic challenges. The passage of this budget signifies a critical step toward enhancing the livelihoods of citizens and the overall economic framework of Albania, as the government aims for substantial progress in various prioritized sectors in the coming year.