Albanian government budget revenues grew by 7.1% in H1 2024

In the first half of 2024, Albania saw a notable rise in its budget revenues. The collected revenues reached approximately 342.8 billion lek, marking a 7.1% growth compared to the same period in 2023. This growth underscores the country’s economic resilience and effective fiscal management.

Why is this relevant

The rise in budget revenues is crucial for Albania’s economic health. Improved tax collection, enhanced economic performance, and efficient public spending contribute to the country’s development. These revenues enable the government to fund essential services, infrastructure projects, and social programs. 

Context

According to the Ministry of Finance’s report on fiscal indicators, the revenues collected during the first half of 2024 amounted to 342.8 billion lek, which is 102.5% of the planned budget for this period. Compared to the same period last year, there was an increase of approximately 22.85 billion lek or 7.1%.

Customs revenues, including VAT on imports, excise duties, customs duties, and mining royalties, were 109.9 billion lek. This is 7.1 billion lek or 6.9% more than the first half of 2023, and 145 million lek or 0.1% more than the customs revenue plan for the first half of 2024.

Tax revenues, including net domestic VAT, profit tax, personal income tax, national taxes, and contributions collected by the General Directorate of Taxation, totaled 187.5 billion lek. This is a 19.8 billion lek or 11.8% increase from the first half of 2023, and 5.1 billion lek or 2.8% more than the plan for the first half of 2024.

Meanwhile, public expenditures for the first half of 2024 amounted to around 291.4 billion lek, achieving 93.1% of the planned target for the period. Compared to the same period in 2023, expenditures were 6.4% higher, amounting to an increase of approximately 17.5 billion lek.