Albanian Parliament approves 2024 budget amendments amid opposition criticism
On Friday, the Albanian Parliament approved amendments to the 2024 state budget with 76 votes in favor and 25 against. The Normative Act primarily focuses on adjusting income and expenditure projections to improve the execution parameters of the 2024 budget and update consolidated indicators for the 2024-2026 period.
Why is this significant
These changes aim to ensure fiscal stability, while promoting key sectors such as agriculture and infrastructure development.
Background
The amendments plan for a 27.3 billion ALL increase in both budget revenues and expenditures, with 19.2 billion ALL coming from increased tax revenues. Key elements of the amendments include additional investments in infrastructure, agriculture, education, and healthcare, as well as funding for the implementation of the new Electoral Code, particularly for the registration of overseas voters.
Despite these changes, the budget deficit remains unchanged at 57.3 billion ALL. The government’s intention is to maintain fiscal consolidation and sustain the medium- and long-term financial stability of the country by ensuring that public debt continues a downward trajectory in relation to GDP.
The Government’s focus has been on maintaining macroeconomic stability while pushing forward necessary reforms in key sectors. Increased investment in infrastructure and subsidies for farmers have been presented as essential for driving Albania’s economic growth. However, opposition leaders have raised concerns about the government’s ability to balance these investments without increasing the burden on citizens.
Reaction of the Opposition
Opposition MP Jorida Tabaku voiced strong criticism of the government’s budget revisions. She argued that the increases in revenue are not the result of good governance or anti-corruption measures but rather stem from higher VAT due to inflation, which she claims disproportionately affects ordinary citizens. Tabaku also highlighted significant cuts to agriculture and pension reforms, accusing the government of prioritizing infrastructure and concessions over the well-being of citizens. Furthermore, Tabaku announced the opposition’s plan to propose a draft law that would return €10 million to freelancers, following a recent Constitutional Court ruling that declared the tax on freelancers unconstitutional.
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