The Government approves the Normative Act for the 2025 Budget — Social support and fiscal reallocations are a priority
The Minister of Finance, Petrit Malaj, presented before the Laws Committee Normative Act No. 11, which introduces several additions and amendments to Law No. 115/2024 "On the 2025 Budget". According to him, the amendments are necessary to address urgent social needs and optimize the implementation of public programs.
The act aims to transfer unused funds during 2025 to a special account at the Bank of Albania for supporting the pension scheme, supporting families in need, people with disabilities and their caregivers, as well as reallocating savings towards higher-performing programs. The government anticipates that at least 150 million euros will be transferred to this account.
From a macroeconomic perspective, Malaj emphasized that the economy grew by 4% in 2024 and the forecast for 2025 is 3.9%. Public debt is expected to remain below 54% of GDP at the end of 2025, the lowest level since 2010. Revenues from taxes, customs and contributions marked a significant increase, with approximately 99.6% of the annual plan being realized.
Within the framework of expenditures, the total remains unchanged, the changes are mainly neutral reallocations for the budget deficit. Among the main measures are: a year-end bonus of 15,000 lek for 148,500 beneficiaries of Economic Assistance and persons with disabilities (total amount about 2.23 billion lek); additional financing for farmers (2 billion lek) bringing the total support to 6.4 billion lek; and 1.76 billion lek for supplies of medicines to QSUT and other hospitals.
Also allocated were 1.3 billion lek for the Ministry of Interior (compensation, overtime, per diem) and 847 million lek for national and international sports activities. In capital expenditures, reallocations were made for projects with good performance: 5.8 billion lek for roads, 4 billion lek for air transport (including support for Albcontrol) and 508 million lek for water supply and sewage.
For strategic investments, 551 million lek were foreseen for the purchase of the Diplomatic Headquarters in London, and about 200 million lek for the acceleration of the project of the Juvenile Institute at the Ministry of Justice. A fund of 1.2 billion lek will be used to settle the arrears of municipalities, covering about 40% of their total.
The Minister emphasized that the Normative Act is a budget management instrument with political responsibility, which maintains fiscal balances, supports social sensitivity and ensures the continuity of fiscal consolidation and the macroeconomic stability of the country.
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