Albanian parl adopts 2024 budget, sets deficit at 2.5%

Budget revenue is projected to reach 676 billion leks ($7.1 billion/6.6 billion), or 27.8% of GDP, a 1.3 billion leks uplift from the government's proposal, the finance ministry said in a press release on Thursday.

Expenditures are set at 737.4 billion leks, or 30.3% of GDP, up from 735 billion leks proposed in the draft budget by the ministry.

Public investment next year is set at 128.5 billion leks, equal to 5.3% of planned GDP, with focus on tourism, agriculture and infrastructure. Public debt-to-GDP ratio is planned to decrease below 60% of GDP, according to the press release

The government’s personnel expenses are seen coming at 119.8 billion leks, including the fund that will serve to increase salaries in the public administration, starting from July 1, 2024. The education sector is set to receive financing of 78.8 billion leks in 2024, whereas 72.2 billion leks are earmarked for the healthcare system.

As many as 52.7 billion leks will be channelled towards the sectors of infrastructure and energy. The approved budget also aims to further support justice reform, allocating 26.8 billion leks for the sector, which represents an year-on-year increase of 4.8 billion leks.

Budget allocation to the defence sector is for the first time set at 2% of GDP to meet the NATO-defined target, the finance ministry noted.

(1 euro=101.788 Albanian leks)