The 2026 budget totals 886.8 billion lek, about 31.9% of GDP. This is roughly 55 billion lek higher than the revised 2025 plan.

The government approved the budget yesterday in the Council of Ministers. It has now reached Parliament, where discussions will start item by item until early December.

Government projections expect revenue to reach 823.1 billion lek, or 29.6% of GDP. This is an increase of 52.9 billion lek from last year, driven by better fiscal management and reduced informal activity.

Economic growth is expected to remain positive, averaging 4% annually from 2026 to 2028. Growth will be supported by domestic demand and strategic sectors.

The budget deficit will be 2.3% of GDP in 2026. The primary balance will remain neutral, in line with current fiscal rules. Public debt will continue to decline, reaching 53.6% of GDP in 2026 and 51% by 2028.

The 2026 budget also funds a minimum pension of 200 euros and an average pension of 400 euros per month.

It finances a minimum wage of 50,000 lek. Public sector salaries will rise 2.5% from January 1, 2026. By 2028, the minimum wage will reach 60,000 lek, indexed to inflation.

Public investment will remain high, averaging 6.5% of GDP from 2026 to 2028. Projects will focus on strategic sectors, following the EU Growth Plan for the Western Balkans and the 2021-2030 National Development Strategy.

The budget includes gender-responsive funding. Around 9.5% of total expenditures will support gender-based policies across 85 programs.

Local budgets for 2026 total 97.7 billion lek, up 9% from 2025, covering 3.52% of GDP. Unconditional transfers to local authorities will increase by 1.6 billion lek, more than double the 2015 level.

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