Budget 2025: Distribution by ministries and priorities

For Albania’s 2025 budget, the government plans to allocate 822.7 billion lek (approximately 8.2 billion euros), focusing on key areas such as health, infrastructure and education. Here is a breakdown by key institution.

Ministry of Health. 80.7 billion lek (810 million euros), directed towards improving health centers, higher salaries for medical personnel and social care programs.

Ministry of Infrastructure and Energy. 74 billion lek (740 million euros), with funds for major transport projects, energy networks and water supply.

Ministry of Education, Sports and Youth. 62 billion lek (620 million euros), half of which aims to improve basic educational infrastructure and reduce classroom overcrowding.

Ministry of Defense. 52.6 billion lek (526 million euros), mainly for the armed forces and NATO-related civil emergencies.

Ministry of Interior. 31 billion lek (310 million euros), with 90% for the State Police

Agriculture. 14.6 billion lek (146 million euros), in support of farmers, land infrastructure and food security programs.

Social Security and Culture. 56 billion lek (560 million euros), of which 400 million euros for social security and the rest for the labor market, housing and cultural activities.

Municipalities. 89 billion lek (890 million euros), an increase aimed at improving governance and local services

This budget reflects an increase compared to 2024, highlighting economic growth, public services and infrastructure.

However, the deficit is projected at 2.6% of GDP due to higher spending

A more complete explanation of our focus and commentary is provided below:

Ministry of Health

Allocation. 80.7 billion lek (~810 million euros)

Focus. Improving healthcare facilities, increasing salaries for doctors and nurses, and improving social care infrastructure

This significant allocation reflects an effort to address long-standing issues in healthcare, such as inadequate facilities and low salaries, which have contributed to workforce emigration. However, it remains to be seen whether these investments can sufficiently improve patient care and retention of medical staff.

Ministry of Infrastructure and Energy

Allocation. 74 billion lek (~740 million euros)

Focus. Major infrastructure projects such as the Milot-Morinë and Orikum-Dukat roads and the expansion of energy networks

The priority of transport and energy is intended to boost connectivity and attract foreign investment. However, critics argue that road projects often overshadow smaller but critical local infrastructure needs.

Ministry of Education, Sports and Youth

Allocation. 62 billion lekë (~620 million euros)

Focus. Reducing classroom overcrowding, modernizing schools and promoting youth development

While the increase in funding (an increase of 9.4 billion lekë by 2024) is commendable, education advocates have questioned whether the budget adequately addresses deeper systemic issues such as curriculum modernization and teacher training.

Ministry of Defense

Allocation. 52.6 billion lek (~526 million euros)

Focus. Modernizing the armed forces and aligning with NATO requirements

Defense spending is in line with Albania’s NATO commitments, but faces criticism from groups advocating a greater emphasis on civilian needs such as education and healthcare.

Ministry of Interior

Allocation. 31 billion lek (~310 million euros)

Focus. Strengthening the State Police to fight crime and increase public safety

While investments in public safety are essential, concerns remain about potential misuse of funds in a sector that has historically faced allegations of corruption.

Agriculture

Allocation. 14.6 billion lek (~146 million euros)

Focus. Supporting farmers through subsidies, irrigation improvements and promoting food security

This budget acknowledges the challenges facing rural areas, yet critics argue that it may not address the deeper inefficiencies in the agricultural sector.

Municipalities

Allocation. 89 billion lek (~890 million euros)

Focus. Strengthening local governance, increasing autonomy and improving services

The higher allocation aims to empower municipalities, but observers point out that transparency and accountability mechanisms at the local level need improvements to ensure the effective use of funds.

Social Security and Labor

Allocation. 56 billion lek (~560 million euros)

Focus. Pension support, housing programs and labor market interventions

With a significant portion dedicated to pensions, this budget aims to address social protection concerns. However, some critics believe that broader measures, such as raising the minimum wage, could better alleviate poverty.

Key investments and priorities

Earthquake reconstruction. €50 million has been set aside for ongoing reconstruction efforts following the 2019 earthquake

Eurobond issuance. A €650 million Eurobond will support the budget, adding to Albania’s debt, which is projected to fall to 55.8% of GDP in 2025.

Deficit management. The budget projects a deficit of €700 million, or 2.6% of GDP, raising concerns about sustainability.

While investments in health, education and infrastructure signal progress, critics highlight gaps in tackling poverty, inequality and corruption.

Effective implementation and transparent use of funds will be critical in translating this ambitious budget into tangible results for citizens.

According to the most prestigious analyses of our country’s economic programs, we have summarized several key points that reflect the opportunities and challenges for future development:

The declared priorities include:

Increase production for consumption and export. Focusing on increasing production capacities to ensure a stable supply for the domestic market and increasing export opportunities can bring about an improvement in the balance of payments and economic stability.

Goal: To increase production capacities to ensure a stable supply for the domestic market and to improve export opportunities.
Expectation: Economic stability and improvement in the balance of payments.
Our criticism: Current infrastructure and energy capacities in Albania are still insufficient to support a rapid increase in production. Also, the challenge of international competitiveness for exports remains.

Policies for the distribution of wealth. There has been an increase in interest in policies that ensure the protection of vulnerable groups, providing social support to those in need, as well as opportunities for employment and development through renewed initiatives.

Goal: To protect vulnerable groups through social programs and the creation of employment opportunities.
Expectations: Reduction of social inequality and improvement of quality of life for the most vulnerable.
Our criticism: Implementation of these policies may be limited by low government revenues and a weak system of distributing funds on the ground.

Improving infrastructure and investment in tourism. Investing in tourism and infrastructure can bring great opportunities for economic growth, creating new jobs and improving access to international markets.

Goal: Improving roads and services to attract more tourists and improve access to international markets.
Expectations: Increased number of jobs and greater contribution of tourism to GDP.
Our criticism: Large spending on roads often focuses on large projects that do not bring direct benefits to local communities. Also, investments in tourism may be unsustainable without diversification of sectors of the economy.

Fields of technology and innovation. Using FDI to invest in technology and innovation sectors can serve as a catalyst for improving competitiveness and developing technological capabilities.

Goal: Using Foreign Direct Investment (FDI) to develop technology sectors and increase the country’s competitiveness.
Expectation: Albania can become a regional hub for technology and innovation, attracting expertise and capital.
Our critique: The current technology ecosystem is still in its infancy and requires significant time and resources to develop.

Compliance with international standards. While aiming to increase development, it is important that economic programs are compatible with international rules and standards, to ensure integration into global markets.

Goal: Ensure the harmonization of economic programs with EU rules and standards and global markets.
Expectation: Increase access to international markets and facilitate the EU integration process.
Our criticism: The implementation of these standards often requires deep institutional and financial reforms, which are challenging in the current conditions of the Albanian economy.

This is a summary of important points related to the development and modernization of the economic program, which require careful planning and sustainable implementation to achieve success.

General criticisms of the 2025 budget emphasize that while the priorities are ambitious and necessary, their implementation faces major challenges, such as corruption, limited administrative capacities, and the lack of sufficient funding for sustainable projects with long-term impact.