TIRANA, Dec 7 /ATA/ – Albanian parliament passed the 2024 state budget bill and the accompanying fiscal package on Thursday morning. The budget received an overwhelming 74 votes in favor, with only four against.
The main objective of the 2024 state budget is to support the country’s stable growth, distribution of the welfare for the citizens, advance structural reforms to boost economic growth and employment, assist people in need, increase productivity, strengthen the rule of law, digitalise the economy and continue important infrastructure investments, maintaining in the meantime further fiscal consolidation.
The budget is also designed to support the ongoing reforms and efforts to speed up the country’s European Union integration process.
The 2024 budget is projected to amount to 737.4 billion lek, equivalent to approximately 7 billion euros, with the budget revenue collections estimated at 676 billion lek, representing 27.8% of the country’s GDP.
The budget also accounts for a deficit accounting for 2.5% of the GDP, whereas public debt to GDP ratio is expected to narrow to 60% in 2024.
The public administration spending is projected to amount to 119.8 billion lek, including an extra fund set aside specifically for salary increases across the public sector as of July 1, 2024. The salary increase effect is estimated at 39.1 billion lek starting as of January 1, 2025.
The 2024 state budget earmarks an amount of around 185.8 billion lek for the pensions scheme, allocating sufficient funding for the pension indexation and the annual bonus for the retirees.
The budget also plans public investments in the amount of 5.3% of GDP to 128.5 billion lek, or 4.6 billion lek more than in 2023, supporting the continued economic growth, tourism, agriculture and connectivity, and encourage quality employment.
The education spending is projected to amount to 78.8 billion lek or 3.2% of the GDP.
Health sector will receive a total of funds of 72.2 billion lek in 2024, representing 3% of the country’s GDP.
The 2024 budget will set aside an amount of 52.7 billion lek or 2.2% of the GDP for the country’s infrastructure and energy sector.
Defense spending represents 2% of the GDP, for the first time meeting the country’s commitment for the defense spending as NATO member.
The 2024 state budget is accompanied by a fiscal package designed to ensure stability of the legislation and the fiscal policies, focusing on well-administration rather than levying significant fiscal measures.
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