Defence Minister Pirro Vengu, referred to the 2025 draft budget as a historic one, marking a major step in strengthening the country’s defense and national security capabilities.

In his address during the parliamentary session on the 2025 draft budget, Minister Vengu announced that the defense sector’s budget for 2025 is set at 52.7 billion lek, representing a 4.6% increase compared to 2024.

While calling for support to approve the budget, the Minister pointed out that defense spending would rise from $215 per capita to $219 per capita in 2025. “For the second year in a row, the defense budget remains above the 2% of GDP target, with more than 20% of total expenditures allocated to critical equipment and modernization,” said Minister Vengu. He also noted that capital spending would increase next year: “We have allocated 28.2 billion lek for capital investments, with 12.2 billion lek coming from foreign financing,” the Minister added.

“The fiscal space,” he explained, “allows us to consider, starting in 2025, the possibility of foreign loans from partner countries, particularly our strategic partner, to finance the Armed Forces’ modernization projects.”

A key priority in this budget is raising salaries for military personnel. “A significant pay increase has been planned, benefiting around 6,000 military members, with approximately 2,500 of them being newly included. This continuous salary growth results in a total increase of 71% since 2021. This is an example of how the country’s economic growth is being redistributed, with a focus on the fair treatment of military personnel.” – emphasized Minister Vengu.

This move is a key step toward the government’s goal of a well-equipped, well-paid, and well-trained military, the Minister further stated. He also clarified that the draft budget allocates 1 billion lek for the reserve force in 2025, a vital component for responding to emerging security challenges both regionally and beyond. The aim is for the reserve force to make up around one-fifth of the Armed Forces by 2030, which would mean about 2,100 personnel.

Modernization and improving operational readiness will receive the largest share of funding, with 54.8% of the Ministry of Defense’s budget for 2025 dedicated to these efforts. The budget ensures the continuation of 21 ongoing modernization projects and the launch of 8 new projects to enhance the Armed Forces’ rapid response capabilities.

Another significant focus of the draft budget is civil emergency preparedness, with 5.5 billion lek allocated for this area, reflecting a substantial increase in recent years.

Revitalizing the country’s military industry, already underway, is also a major part of the budget. This initiative aims to restore the production capabilities for ammunition, explosives, and light weapons, utilizing the latest technology. The goal is to make the sector competitive in international markets. According to Minister Vengu, the revitalization of the Military Industry is expected to generate revenue as early as 2025.