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Budget 2026 priorities: Focus on defense and public order, funding for innovation reduced

2025-11-05 07:30:30, Ekonomi CNA

Budget 2026 priorities: Focus on defense and public order, funding for

The Ministry of Defense has received priority in budget funding for 2026. The largest increase in funds is focused on Defense and Public Order.

Overall, the spending structure shows a shift towards the security and public services sectors, to the detriment of innovation and economic development programs.

The Ministry of Defense is the largest beneficiary of the new budget, with an increase of 10 billion lek, or over 20% more than in 2025. The main focus remains on strengthening defense capacities and financing obligations to NATO. Equally significant is the addition to the Ministry of Interior, which increases by almost 4 billion lek, supporting the State Police.

In education, funds reach 64.8 billion lek, up from 61 billion last year, an increase of over 6%, mainly related to the financing of basic education and research projects in universities. The Ministry of Finance also benefits from an increase of 2.3 billion lek, to cover the costs of fiscal administration and customs strengthening.

On the other hand, the Ministry of Economy and Innovation suffers a significant contraction of around 5.6 billion lek, as a result of the reduction of innovation and labor market programs. A decrease is also recorded in the Albanian Development Fund, where funds fall by around 1.2 billion lek, reflecting the completion of several foreign-financed infrastructure projects.

In the agriculture sector, the 2026 budget increases by 9%, reaching 16.2 billion lek, mainly for irrigation and rural development programs. Health and social welfare remain among the sectors with the largest share in the total budget, with a modest increase of 2.8 percent, while Tourism and Culture also benefit from additional funds for museum projects and cultural activities.

Overall, the 2026 budget focuses on fiscal consolidation and increased spending on wages, public services and security, leaving less room for active economic development policies. Compared to the 2025 normative act, capital financing increases only slightly, while the bulk of the increase comes from current spending, related to the increase in public sector wages and the indexation of social costs.

The result is a more cautious budget, which maintains fiscal balances, but marks a clear orientation towards the security, education and public administration sectors, in a period of limited revenue growth and economic uncertainty./ Monitor.al