TIRANA, November 12 – Defence Minister Pirro Vengu presented the 2026 draft budget for the Ministry of Defence, highlighting five main priorities. He said the budget reaches 2.12% of GDP for the first time.

The 2026 defence budget totals 58.9 billion Lekë, a 12% increase from 2025.

The first priority is human capital. Vengu said the budget allocates 13 billion Lekë for salaries, welfare, and continued pay increases. He added that the goal is to match NATO average salaries by 2029. In addition, the reform covers military status for active, reserve, and retired personnel. The budget includes 450 new recruits for the first half of the year and the return of qualified specialists to active service.

The second priority is operational readiness. Vengu said 16.3 billion Lekë will fund unit readiness. These funds cover maintenance, international missions, training, equipment, cyber defence, uniforms, ammunition, and personnel safety.

The third priority is modernisation and domestic defence industry. Vengu said 29 billion Lekë will go to capital investments. In particular, the funds will support domestic production of ammunition, drones, armoured vehicles, and anti-drone systems. Industrial complexes in Tirana, Rubik, and Shkozet are being reopened, while further sites in Poliçan, Gramsh, and Mjekës will follow. The budget also supports the second phase of the new Armed Forces campus in Tirana, the reopening of the Aviation School, and the upgrade of the Bunavi training centre.

The fourth priority is civil protection and community safety. Vengu said 4.3 billion Lekë, about 8% of the budget, is allocated for emergencies. Specifically, one billion Lekë will support local government units. Another billion Lekë will fund disaster prevention infrastructure, and 300 million Lekë will continue the national dam rehabilitation program. Moreover, the budget finances two regional emergency centres in Bushat and Krane. Funding will also support the national and European emergency number 112 and the first phase of a new high-mobility fire-fighting fleet.

The fifth priority is digitalisation and innovation. Vengu said the budget invests in integrated command-control systems, secure communication networks, intelligent drones, and advanced decision-making tools. In addition, partnerships with public universities and tech companies will support AI solutions, simulations, and virtual training.

Vengu concluded by highlighting the economic impact of revitalising the domestic defence industry. He said state company KAYO expects €3.8 million in direct revenues, €8 million in indirect revenues, and 326 new jobs in the first year.

/a.p./