TIRANA, June 5 – Local government revenues rose by 188% in the first quarter of 2026 compared with the same period a year earlier, Finance Minister Petrit Malaj said at a press conference on fiscal and macroeconomic indicators. He said total local revenues reached 17.2 billion ALL by the end of March, or 11.2 billion ALL more than in the first quarter of 2025.

According to Malaj, the infrastructure impact tax contributed most to the increase. Revenue from the tax reached 11.08 billion ALL. The figure stands around 9.1 billion ALL higher than a year earlier. He said Tirana, Vlora, Himara and Saranda recorded the strongest growth from this source. Meanwhile, the minister linked the increase to strong construction activity, particularly in tourist and urban areas.

Moreover, Malaj said investment in construction will generate long-term benefits for local finances because completed developments will later contribute through property tax payments. At the same time, property tax remained the second-largest source of local revenue. Municipalities collected 1.81 billion ALL from the tax by the end of March, up 2% year on year. Tirana, Vlora, Elbasan and Patos recorded the largest increases.

Local government spending also increased during the quarter. Malaj said total expenditure reached 17.1 billion ALL, up 9.9% from a year earlier. Capital spending led the increase with growth of 31%, followed by local government subsidies at 17% and operating expenditure at 10%. Capital investment reached 2.23 billion ALL, while Kukës, Kamza, Vora and Durrës Municipality recorded the highest implementation rates. He said the figures show municipalities are placing greater emphasis on development projects and public investment.

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