During the argumentation in the Parliamentary Session on the Normative Act for some amendments and additions to the law “On the 2024 Budget”, the Defense Minister Pirro Vengu stated that this act gives great support to the Defense Budget, creating conditions for the implementation of a significant number of priorities and investments.

Minister Vengu highlighted the transformational decisions of the Albanian government in favor of civilian and military personnel, through salary increases from 7% to 22%. The revival of the Defense Industry, the increase in investments for the modernization and operational readiness of the Albania Armed Forces are some from the main planning issues of the Ministry of Defense.

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The full speech of the Minister of Defense Mr. Pirro Vengu:

Dear Speaker of Parliament,
Dear Members of Parliament,
Dear citizens,

This Normative Act brings several innovations to the Defense Budget, creating the conditions for a significant number of priorities and investments to be implemented.
Beyond the fact that the Security and Defense Budget is increasing (total value 48.7 billion ALL being added to the value of 355.5 million ALL, or of 0.74% expressed as a percentage), in accordance with our commitment to the Alliance, let me clarify briefly some innovations in the field of Defense:

The first pillar concerns the increase in salaries of civilian and military personnel, from 7% escalated to 22% giving priority to lower ranks. It was said here that, we have no innovation about salaries. Not only do we have wage increases, but we also have a policy of redistributing public revenue towards those who need it most.
In this way, we not only align the salaries of the Armed Forces with the increase recently received by the State Police, but also ensure that specialized military personnel, pilots, engineers or operators of military drones, have a more dignified reward. This is a significant step towards achieving the Albanian Government’s objective of a well-equipped, well-paid and well-trained military force.
The second pillar concerns the re-establishment of the Defense Industry, where the Normative Act foresees a significant investment for the creation of the Defense Industry Agency and the establishment of the state company KAYO. These two new entities constitute the main instrument of the revival of the Military Industry. Why is this important? For three reasons:

• First, for the effect that we already have a clear regulatory framework, aligned with NATO standards, including some incentive measures for foreign investors in this field, aiming at the creation of joint companies, from the production of which the Albanian state can generate more public revenue, because this Government knows better than anyone else, that the real needs for more social justice, more equality in pay and more investment in public services cannot be addressed by tax increases, but only by the stable growth of income and public goods;
• Precisely, and this is the second point, the vision that this Normative Act brings to life is that: Defense Sector should not be only an expense, not only a cost for taxpayers, but also it will be able to generate income and public goods in function of salary increase, pension increase and investment increase;
• And, the third reason, why this industry is important, has to do with the chain effects it brings to the economy as a whole, especially in Civilian Industries since there is no successful Defense Industry without a dynamic Civilian Industry.

In this context, it is worth noting that the Normative Act also enables the 100% liquidation of all liabilities of the State Military Enterprises of Poliçan, Gramsh and Mjekës, including liabilities to personnel, former employees, municipalities and other entities, addressing problems of several years, which also brings a financial space for the local government, respectively:

• Mechanical Combine Poliçan (munition) 213.000.000 ALL;
• Explosive Materials Plant in Mjekës in 50.000.000 ALL;
• Mechanical Plant in Gramsh (ammunition) in 27.000.000 ALL.

In this way, these three objects are relieved of all the burden of the hindrance of the past and are given the opportunity to look into the future. The repayment of the liabilities of the three military factories opens a new chapter for the municipalities where they are located, which benefit from those incomes that time had “frozen” for about 15 years.

The third pillar is about increasing investments for modernization and increasing the operational readiness of AAF structures and the continuation of the contribution to operations and missions abroad, which have recently been added within the framework of naval military missions.

The fourth pillar is about meeting expenses for citizens damaged by natural disasters throughout the country, in Kamëz, Vorë, Kurbin, Elbasan, Gramsh, Librazhd, Peqin, Mat, Klos, Dibër, Kolonje, Pogradec, Kukës and Polican.

The fifth pillar is also very important, as it is about meeting the increased expenses for medical drugs, orthopedic materials, neurological, hospital services in the Trauma Hospital, where, as you know, we also have the coverage of health services for military personnel and we aim to improve services for an increased number of specialist capacities.

Here are five examples where the normative act ensures an increase in investments and a redistribution of income, two primary tasks of a fairer budget.

Thank you!