The Ministry of Finance plans to submit the draft budget for 2026 for approval to the Council of Ministers at the end of this month.

After approval by the government, the financial document will be presented to the Conference of Speakers in the Assembly, where the calendar of consideration in the parliamentary committees will be determined.

Discussions on the draft budget will take place in the relevant committees during November, while the article-by-article approval in a special plenary session is expected to take place in the first week of December.

The main priorities of the draft budget for 2026 focus on increasing investments in infrastructure, supporting strategic sectors and strengthening social policies.

Within the framework of this draft budget, it is also foreseen to increase the minimum wage to the level of 500 euros, an important measure aimed at improving the standard of living and strengthening the workforce in the country.

The draft budget aims to support economic growth, fiscal stability and improving social welfare. Economic growth, according to the Macroeconomic and Fiscal Framework, is expected to be approximately 4% for the years 2026-2028.

For the years 2026, 2027 and 2028, it is expected to be 4%, 3.9% and 4.1%. The government aims to reduce the fiscal deficit to 1.9% of Gross Domestic Product (GDP) in 2026 and maintain a positive balance of 0.7%. Public investments, referred to the Macroeconomic and Fiscal Framework, will be around 5.9% of GDP during the period 2026-2028, while budget revenues are expected to increase by 5.3% per year. More specifically, 5.5% for 2026, 6.2% for 2027 and 4.2% for 2028.

Referring to the Framework, total government resources to be spent during the years 2026-2028 are expected to be on average around Lek 885.8 billion per year or on average around 30.6% of GDP.

The 2026 draft budget will also be accompanied by the Fiscal Package. A VAT refund is foreseen for farmers, which will function as a direct transfer in support of them. From 2022, the creditable VAT scheme was completely abolished, setting 0% deductible VAT for purchases by farmers. About Lek 1.5 billion will be allocated annually for the implementation of this measure.

An important initiative in this draft budget is the “Fiscal Peace 2026–2029”, which will help businesses by forgiving tax debts and interest on arrears for debts older than 10 years. It will also be possible to review the financial statements of the last 5 years.