Expenditures and revenues for 2025, focus on infrastructure

2024-11-06 14:07:00, Ekonomi CNA

The Minister of Finance, Petrit Malaj, presented today to the Committee for Economy and Finance the income and expenses planned for the draft state budget for 2025.

Minister Malaj emphasized that the main objectives of this draft budget are ensuring sustainable economic growth, creating opportunities for employment and development, as well as fiscal consolidation, which aims to reduce public debt and maintain macroeconomic and fiscal parameters at positive levels.

Budget revenues for 2025 are projected at ALL 754.6 billion, or 28.8% of GDP, an increase of ALL 40.6 billion compared to the revised plan for 2024. Meanwhile, budget expenditures for 2025 are planned at ALL 822.7 billion, with an increase of 51.4 billion ALL compared to 2024.

Minister Malay explained that the increase in budget revenues for 2025 is based on several key factors. An increase of the Gross Domestic Product of 3.9% and a price index of 3% is predicted. Likewise, the wage reform launched in July 2024 is expected to bring additional income from the tax on wages and contributions. Another important factor is the improvement in the administration of taxes and duties, as well as the effects of the fiscal policies implemented in the past years.

Tax revenues for 2025 are expected to reach 709.8 billion ALL, with an increase of about 54 billion ALL compared to 2024. Of this amount, 499 billion ALL will be collected from taxes and customs, while 168.9 billion ALL will come from social and health insurance contributions. The Minister of Finance emphasized that the main sources of revenue growth are good administration, economic growth and the positive effects of previous fiscal policies.

Budget expenditures for 2025 are planned at 822.7 billion ALL, and will be focused on priority sectors such as education, health, infrastructure, digital services and agriculture. Minister Malaj underlined that for the year 2025, the European Union (EU) Growth Plan for the Western Balkans will be financed as a priority, which will help accelerate the economic and social convergence with the EU countries.

Likewise, the expenses for salaries in the public administration will reach 127.6 billion ALL, while the operating expenses for the central government will be 71.3 billion ALL. Another part of the spending will be used for support with social schemes, including support for farmers, maintenance of digital infrastructure and cyber security, as well as spending on education and health.

In terms of social expenses, ALL 263.8 billion have been provided for the Social Security and Health Funds. Most of these funds will go to social insurance (192.3 billion ALL), while 63.1 billion ALL are planned for health insurance.

Also, for 2025, funds for state subsidies, unemployment payments, economic assistance and the birth bonus have been provided.

Minister Malaj concluded by emphasizing that this draft budget is an important step for the sustainable economic growth of the country and for improving the social well-being of Albanian citizens.

The draft budget for 2025 has as other objectives fiscal consolidation, with a reduction of public debt to 55.8% of GDP and a positive primary balance. An economic growth of 3.9% is predicted for 2025, which will be supported by domestic demand and exports, with a special focus on the tourism sector./ Monitor magazine