TIRANA, Nov 5 /ATA/ – Albanian government plans to raise public sector wages and pensions next year under its 2026 draft budget, which Finance Minister Petrit Malaj described on Wednesday as “the government’s contract with citizens for sustainable development, social welfare and fiscal consolidation.”
Presenting the draft to lawmakers, Malaj said total public spending would reach 886.7 billion leks, focused on social welfare, modern infrastructure, green energy, digital services and human capital development. The plan reflects the government’s 2025-2029 programme priorities of sound public finances and improving living standards, he said.
The draft introduces a new policy to index public sector wages every two years. The minimum wage will rise by 10,000 leks to 50,000 leks from January 2026, and to 70,000 leks by the end of the government’s term.
Finance Minister said economic growth in 2025 is projected at 3.9%, driven by domestic consumption, investment and tourism. He added that unemployment has fallen to a record low of 8.5%, inflation is stable at 2.2%, and the external position has improved through a lower current account deficit and higher exports.
Public debt declined to 54.2% of GDP in 2024 – its lowest level since 2008 – and is expected to fall further to 53.6% by the end of 2026.
Malaj noted that rating agencies Standard & Poor’s and Moody’s had reaffirmed Albania’s “stable” outlook, reflecting confidence in the government’s fiscal policies.
Budget revenues are projected at 823.1 billion leks, or 29.6% of GDP, up 52.9 billion from 2025, supported by economic growth, new tax policies, price indexation and the implementation of the Medium-Term Revenue Strategy.
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