Issuing for the first time a 20-year treasury bond is a key test for the Albanian domestic market through which the government will seek to raise 1.5 billion lek.

The Ministry of Finance also plans to offer 1 billion lek worth of 20-year treasury bonds at another auction in March 2025.

The longest maturity applied to date is the 15-year T-bond.

This instrument primarily targets individuals and entities with longer-term savings plans and has many positive economic and financial effects.

In the first half of 2024, the Ministry of Finance has issued 239.6 billion lek worth of government securities, 136.5 billion lek worth of short-term securities and 103.1 billion lek in long-term securities.

Net borrowing in the domestic market at the end of the first half of 2024 amounted to 23.9 billion lek, and was achieved mainly (89.7%) through long-term instruments.

In the first half of the year, two large-value government bonds matured; namely the 3-year bond worth 20.8 billion lek and the 5-year bond worth 18.7 billion lek.

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According to the financial indicators of the Ministry of Finance and Economy, budget revenue collections rose 8.2% year-on-year to 11.646 billion lek more than during the same period of the previous year.

The revenue collected by the General Directorate of Taxation and the General Directorate of the Customs Administration amounted to 261.5 billion lek up by 2% or around 5.2 billion lek more than planned for the first seven months of 2024. Revenue collections rose 9.4% year-on-year to 22.4 billion lek more than during the same period of 2023.

The total public expenditures were estimated at 347.5 billion lek, accounting for 92.3% of the planned spending in the first seven months, recording a 6.3% increase or by around 20.5 billion lek in expenditures compared to the same period of the previous year.

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According to the financial indicators of the Ministry of Finance, the state budget revenue collections from profit tax rose 40.9% year-on-year in the first five months, or 32.7% or 7.2 billion lek more than planned.

The increase in revenue collections from the profit tax is mainly driven by high profit rates for businesses due to the increased prices and tax well-management.

Service, construction, trade and manufacturing sectors accounted for the largest share in increase of the revenue collections compared to the same period of the previous year.

Corporate income tax is subject to legal entities and partnerships registered for VAT, legal entities, as well as other partnerships among individuals established or structured under a foreign law and that operate in the territory of the Republic of Albania.

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According to the Ministry of Finance and Economy data, the tax administration collected an additional amount of 4.5 billon lek in revenue from the personal income tax compared to the same period of the previous year, when the collections totalled around 33 billion lek.

The increase in the state budget collections from the personal income tax was also influenced by the obligation of the over employed workers to fill in the individual annual income statement that should be completed within the first 4 months of the year, as well as the government’s action to correct salaries.

A total of 82,178 individuals, subject to personal income declaration, have submitted the form with financial benefits until April 30, 2022.

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