Budget revenues in relation to the gross domestic product (GDP) recorded a modest increase in 2025, reaching 28.5% of GDP, from 28.2% in 2024, according to official data from the Ministry of Finance.

Over the past year, the share of total revenues in relation to the economy expanded by 0.3 percentage points, but Albania still remains well below the regional and EU averages for this indicator.

In tax revenues, the increase is even more pronounced than that of the budget total. This indicator increased by 0.8 percentage points, moving from 26.2% in 2024 to 27.0% of GDP in 2025.

Historical data show a performance with strong fluctuations in Albanian public finances over the last three decades. The turn became more visible in the early 2000s, when the share of income in the economy stabilized above the 25% threshold, reflecting the strengthening of institutions and the formalization of the economy after successive transition crises.

The increase in tax revenues by 0.8 percentage points within a year indicates a specific dynamic that goes beyond the natural growth of the economy. The strongest role in the increase in additional revenues last year was played by the increase in wages in both the private and public sectors. According to official data from the Ministry of Finance, additional revenues last year came from payroll taxes.

Albania has also experienced a high influx of tourists, which has increased domestic demand for services. This has increased revenues from indirect taxes (such as VAT and excise duties).

Despite the progress, Albania remains last in the Region and the EU in terms of revenue collection. Compared to its Western Balkan neighbors, Albania ranks below the regional average, where countries like Serbia and Montenegro manage to collect over 38% to 42% of GDP in the state treasury. This gap with its neighbors shows that the Albanian economy still suffers from a higher level of informality and a narrower tax base.

The gap compared to the European Union becomes even more evident. The average of EU countries for budget revenues fluctuated around 49% of GDP in 2024, according to data from Eurostat, where countries with a developed social model, such as France or the Scandinavian countries, often exceed 50% of GDP. Albania, with only 28.5%, collects almost 17 percentage points less than the European average.