Today’s Parliamentary Session’s Draft Law “On the 2026 State Budget”

Today, Parliament held a plenary session to discuss the draft law “On the 2026 State Budget.” During the session, Prime Minister Rama delivered a speech emphasizing salary increases and significant support for retirees, workers, and businesses.
He began by citing international data from Eurostat, which shows that Albania now has a lower risk of poverty than many other countries in the region and is approaching the EU average. Similarly, the Bank of Albania projects an average increase of 4-5% in disposable household income between 2021 and 2024, and the IMF ranks Albania as one of Europe’s fastest-developing economies.
The Prime Minister emphasized that the 2026 draft budget is historic because it includes a €1.7 billion medium-term package dedicated solely to increasing support for pensioners. “For the first time, this budget meaningfully and sustainably addresses the strengthening of support for pensioners through a medium-term financial commitment of €1.7 billion,” the Prime Minister said, stressing that “pensioners are the key priority of this budget and will remain the key priority of this mandate.”
In the field of social protection, the 2026 budget is 257 billion ALL, which is an increase of 11.6 billion ALL. In addition to pensioners, the budget will support families receiving economic assistance, individuals with disabilities, and new families through the continuation of the baby bonus program.
Prime Minister Rama also emphasized fiscal relief for small businesses, noting that they will not pay corporate profit tax until 2029. “We remain firmly committed to our position that, until 2029, small businesses will not pay profit tax,” he said, noting that Albania has the highest percentage of VAT-exempt small businesses in Europe.
The fiscal package includes the Fiscal Amnesty (“Paqja Fiskale”), which offers broad forgiveness of old tax liabilities and a new agreement with businesses that allows for the correction of tax returns with a 5% tax rate on corrected profits.
One of the main elements of this budget is salary growth. Starting in January, the minimum wage will rise to 500 euros, with the goal of reaching 700 euros by the end of the fourth mandate. Increases tailored to lower-wage groups are planned, along with raises for teachers, doctors, nurses, and state police employees. For the first time, periodic indexation will be applied to the public administration every two years.
Regarding the agricultural sector, the Prime Minister announced a new compensation program for farmers with a reimbursement rate of 10%, the most competitive in the region. “I would like to add one more thing: the new compensation scheme for farmers who are not VAT subjects. Through this VAT compensation carried out directly by the tax administration, I believe we will meaningfully boost the agricultural sector by supporting farmers directly. The reimbursement rate we have set is the most competitive in the region, surpassing the 5–8% rates of other countries and reaching 10%,” said the Prime Minister.
Regarding security and justice, the budget anticipates substantial increases in defense spending, investments linked to NATO commitments, and additional support for an independent judiciary. The Prime Minister noted that the EU’s most positive evaluations are specifically related to the progress of justice reform and respect for the independence of the new institutions.
In conclusion, Prime Minister Rama emphasized that Albania has entered a decisive phase of EU accession. The country has opened all negotiating chapters and received the strongest evaluations for meeting the conditions of the Growth Plan.