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Wage reform increases costs in the budget, budget expenditures increase by ALL 26.7 billion in 2025

2024-08-15 14:02:04Biznes SHKRUAR NGA REDAKSIA VOX

Wage reform increases costs in the budget, budget expenditures increase by ALL

The government plans to increase budget expenditures progressively from year to year. Referring to the decision on the approval of the final expenditure ceilings of the medium-term budget program 2025-2027, published in the Official Gazette, it is noted that in the next 3 years, expenditures are expected to increase significantly.

Specifically, referring to the normative act of February 2024, budget expenditures are programmed at 414.6 billion ALL. Whereas, in 2025 they are planned to go to 441.3 billion ALL, with a jump of 26.7 billion ALL, and they will also continue to grow in 2026, being planned to 448.2 billion ALL and in 2027 to 452.6 billion ALL.

The increase is observed in the two main items, both in current and capital expenses, but mostly those that will "cost" more are the current expenses related to the salaries and social security of the administration employees, which also comes as a result of the salary increase reform undertaken by the Albanian government.

Specifically, in 2025, current expenditures are expected to reach 308.4 billion ALL from the 287 billion ALL that have been programmed in the current year, with a jump of 21.4 billion ALL. While capital expenditures next year are programmed at 132.8 billion ALL with an increase of nearly 5.3 billion ALL compared to 2024.

Growth continues to be progressive for both items and in 2027 it is predicted that public institutions in the country will spend 313 billion ALL in current expenses and 139.6 billion ALL will go to investments, including those with internal and external financing.


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