How much does public administration cost us? - ALTAX Analysis/ The real value it produces for the economy and efficiency
Public administration is costing the state budget dearly, while the real value it produces for the economy and society remains low. According to the analysis published by Altax, in 2026 total budget expenditures are projected to be around 887 billion lek, or approximately 32% of Gross Domestic Product.
Of this, about 140 billion lekë goes to public employees' salaries and contributions alone, which constitute 5% of GDP. Practically, 1 in every 6 lekë of the state budget is used for public administration salaries.
Meanwhile, the average monthly salary in the public sector is estimated at 92–100 thousand lek, or about 1 thousand euros, but the real cost for each employee, including operating expenses, insurance, infrastructure and maintenance, reaches up to 2 to 2.5 million lek per year, up to 2.5 times more than the gross salary.
According to ALTAX, the main problem remains efficiency. The analysis shows that for every 1 lek spent, public administration produces only 40–60% real value, a significantly lower level compared to the Western Balkan countries, where the efficiency coefficient ranges from 0.7–0.8, and far from the European Union average, which ranges from 1.2 to 1.5.
According to experts, this makes public administration more of a net burden on the economy, rather than an engine of development.
Altax emphasizes that the solution requires greater transparency, reform, performance measurement, and an administration built on meritocracy.
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