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 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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The Normative Act was introduced by Finance Minister Petrit Malaj, who explained that “the first revision of the 2025 budget, approved by the government in April 2005, includes only one adjustment to the revenue and expenditure items in the state budget—allocating a fund of 1 billion lek, or approximately 10 million USD, to MEKI.”

Malaj announced that the financial effect of this fund will be covered by revenues generated by the Agency for the Administration of Seized and Confiscated Assets.
“This fund is allocated to the Ministry of Economy, Culture, and Innovation (MEKI) in its capacity as the sole shareholder of the Albanian Investment Corporation (KISH) sh.a, which submitted the request to finance the Albanian Government’s participation in the startup investment project ‘Thinking Machine Lab,’ with a value of no less than 10 million USD (1 billion lek),” stated the minister. He added that the payment was due in April 2025 in order to implement the project and secure the necessary benefits, referring to the startup founded by Albanian Mira Murati.

According to him, this investment is expected to generate financial and economic benefits, as well as promote a success story originating from an Albanian entrepreneur who has contributed to the field of AI—serving as a potential role model for young entrepreneurs.

“This startup is one of the most innovative projects globally in the field of AI, with significant potential for technological advancement and economic returns for the country,” the minister stated. “Beyond the direct economic impact, this partnership will strategically benefit Albania by elevating its position within the global tech community and demonstrating the country’s commitment to supporting innovative technologies and advanced research. It will attract international investors and position Albania as a hub for AI research and development—an opportunity that also serves as global marketing for our nation.”
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