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Malaj: Budget changes to fund pension indexation and increased support for children with disabilities

TIRANA, July 21  /ATA/The Normative Act introducing several additions and amendments to the 2026 State Budget Law aims to ensure the timely implementation of policies with a direct economic and social impact by financing measures for pensioners, families with children with disabilities, defence, infrastructure and economic development.

Minister of Finance Petrit Malaj said the government had revised the 2026 state budget in response to financial and fiscal developments identified during its implementation.

“These amendments are needed to ensure the timely implementation of policies with an immediate economic and social impact, in line with legal and budgetary deadlines,” Malaj said.

He said the Act would advance the annual pension indexation to July 1, 2026, from the previously planned October 1.

“The 2.7% pension indexation will take effect from July 1. The plan is for pension indexation to be carried out in April next year, as it was in the past,” Malaj said.

In addition to pensions, the Normative Act includes other social measures, including doubling financial assistance for children with disabilities, with the increase taking effect from July 1, 2026.

The state will also cover social security and health insurance contributions for caregivers of people with disabilities, effective from Oct. 1, 2026, at a total annual cost of 2 billion leks, the minister said.

Malaj said another priority of the Normative Act was to finance defence spending to help Albania meet its international commitments to NATO.

The Act also places particular emphasis on infrastructure investment.

“The Act provides for an additional 1 billion leks in foreign financing for well-performing projects, as well as 6.5 billion leks in additional funding for priority infrastructure investments,” Malaj said.

Of this amount, 3 billion leks will be allocated to establish the Municipal Logistics Services Operator, aimed at supporting local governments with machinery, equipment and logistical resources, he added.

Additional budget allocations for institutions

Through the Normative Act, the Ministry of Economy and Innovation will receive an additional 1.6 billion leks, which will be allocated as follows: 872 million leks to bring forward pension indexation, allowing the 2.7% increase to take effect from July 1, 2026, instead of October 1 as initially planned (with a six-month financial impact of 2.53 billion leks and a total annual impact of 5 billion leks); 300 million leks in additional funding for the Start-up grant scheme, following a threefold increase in the number of applications; 80 million leks more for the “Double Your Business” programme, aimed at expanding SMEs’ access to financing; and 40 million leks in additional funding for the organisation of the Investment Forum, as part of efforts to strengthen Albania’s investment climate.

The Ministry of Health and Social Protection will receive an additional 3.9 billion leks under the Normative Act, including funding for the following measures:

  • 750 million leks to double payments for 10,720 children with disabilities, effective from July 1, 2026 (with an annual financial impact of 1.5 billion leks);
  • 674 million leks to cover social security and health insurance contributions for 14,657 caregivers of people with disabilities, starting from October 1, 2026 (with a full annual cost of 2 billion leks);
  • 1.5 billion leks to secure oncology medicines for public hospitals;
  • 150 million leks to increase salaries for around 400 doctors and 1,200 medical science technicians working in emergency services (with an annual cost of 300 million leks);
  • 100 million leks in additional funding for the compensation fund for former politically persecuted individuals, based on progress in processing outstanding claims (raising the planned annual budget from 1.5 billion to 1.6 billion leks);
  • 700 million leks for hospital and laboratory equipment and the development of digital healthcare infrastructure for 2027 and beyond.

The Ministry of Defence will receive additional funding of around 10.3 billion leks, while the Ministry of Education will be allocated an extra 750 million leks for primary education, free textbooks, student support and investments in education infrastructure.

The Ministry of Education will receive around 750 million leks in additional funding, including 500 million leks for the basic education programme, free textbooks and student support, and 250 million leks for investments in school and university infrastructure.

The Ministry of Agriculture and Rural Development will receive an additional 164 million leks for irrigation and drainage projects, including reallocations with a neutral budget impact, with the projects set to continue during 2027–2028.

The Ministry of Interior will receive around 704 million leks in additional funding, while SPAK will be allocated 200 million leks to strengthen its capacities, procure electronic equipment and enhance cybersecurity.

The Central Election Commission will receive an additional 99 million leks for preparations for the 2027 local elections, maintenance of IT systems and other legal obligations.

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