The government has today approved the draft budget for 2024. The Minister of Finance, Ervin Mete, presented the draft budget, saying that 39 billion lek will go to increase salaries, with the aim of reaching the goal of an average salary of 900 euros within 2024.
Also, the draft budget foresees a fund of 11 billion lek for the further increase of salaries of general doctors, nurses and other health workers, teachers in pre-university education, law enforcement, defense and enforcement levels of the central and local administration.
Minister Mete's speech:
Today, at the meeting of the Council of Ministers, we approved the 2024 Budget Project, which sets a new level regarding the planning of public expenditures that exceed 7 billion euros.
The draft budget supports further economic development, promotion of employment and social protection, aiming at the same time the proper balance of macroeconomic and fiscal balances.
As the IMF also assessed today, the Albanian economy appears as one of the most resistant economies in the region, already entering a new phase. The current favorable conjuncture creates opportunities to push forward a series of reforms to ensure sustainable and inclusive growth.
In our projections, we foresee an economic growth of 3.8% for next year, a positive primary balance, further fiscal consolidation, employment growth and lower inflation.
Our ambition is that as we have been one of the most resilient economies in the region, we aim to be one of the main destinations in the region in terms of tourism, aiming at the same time to offer quality employment and among the highest salaries in the region.
The 2024 draft budget responds to this ambition.
Supporting the increase in wages and making it possible to achieve the objective set by the government to reach an average wage level of 900 euros per month within 2024. The draft budget foresees a fund of 11 billion lek for the further increase of salaries of general doctors, nurses and other health workers, teachers in pre-university education, law enforcement, defense and enforcement levels of the central and local administration. In total, the overall effect on the budget for the financing of this major reform in the salary system amounts to ALL 39 billion.
The indexation of pensions is also financed, which in the last two years reached the figure of about 25 billion ALL.
Support for social protection and the needy strata follows, allocating about 33%, 1/3 of the general public expenditure for the pension scheme, economic assistance, disability payment, unemployment payment, social assistance, ex-persecuted, ex- owners, etc.
The financing of public investments programmed for 2024 will be over 5% of GDP, continuously supporting economic growth, to further develop tourism, agriculture and connectivity, as well as promoting employment. The investment package supports national and local infrastructure, to better respond to the growing tourism demand.
The draft budget continues to finance the reconstruction process, following the support provided through the Normative Act.
The required level related to NATO membership commitments is respected, with 2% of GDP in 2024 and this is achieved for the first time.
The available budget for local government units increases significantly, where for 2024 the expenses are expected to be 71 billion ALL, or 10.4% more than the budget of 2023. An important part of the local government budget is the central government grant for local units in the amount of 36.5 billion ALL.