TIRANA, Nov 4 /ATA/ – Local budget spending is estimated to amount to 89.9 billion lek in 2025, up by 13.2% compared with 2024, the Minister of Finance Petrit Malaj told lawmakers at the Parliamentary Committee on Legal Affairs, Public Administration and Human Rights, on Monday.
Presenting the proposed 2025 state budget bill, Finance Minister underlined that local budget spending in 2025 accounts for 3.43% of the country’s GDP from 2.9% in 2024 and 2.3% in 2015.
Malaj underlined that fiscal decentralization and the increased autonomy of local government have yielded positive results in recent years.
“Local government revenue recorded significant increase to around 20 billion lek and we expect to surge by 3% in 2025.
The conditional transfer towards the local government in 2025 is projected to amount to 2.2 billion lek, with a total of 200 million lek earmarked for investment and reconstruction projects to improve safety of dams and water catchments.
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