TIRANA, Nov 11 /ATA/ Deputy Prime Minister Albana Koçiu on Wednesday outlined the main features of the 2027 draft budget.
Speaking in an interview with public broadcaster, Koçiu highlighted its social priorities, tax relief for individuals and businesses, and measures targeting pensioners, young couples and students.
The draft budget for 2027, which is expected to be put to a parliamentary vote, stands at approximately €10 billion.
Koçiu stressed that the budget’s value should not be judged by its size alone, but by its impact on public welfare, the quality of services, investment in critical infrastructure and the fulfilment of Albania’s EU integration commitments.
She described the draft budget as socially focused and aligned with the Socialist Party’s governing agenda, highlighting the principle that “those who earn more pay more”. She added that this approach was reflected in several targeted policy measures included in the budget.
“It is a budget that places strong emphasis on social protection, catering to every age group within the family, from children to the elderly. It also provides for students, young couples and people from disadvantaged social backgrounds or with special needs. In essence, it addresses the needs of families across the board.
Koçiu said the 2027 draft budget is based on the Socialist Party’s core governing principle that those who earn more should pay more. She noted that this is reflected in a range of targeted measures, including VAT adjustments, with lower rates on basic food products and higher rates on certain other goods.
“On the other hand, income tax will also be higher for certain categories of employees and those earning more. People on higher salaries will, of course, pay more tax. This is intended to redistribute income and ensure that state budget support is directed where it is most needed,” Koçiu said.
One of the measures discussed under the 2027 fiscal package is the reduction of VAT to 6% on 54 basic consumer goods. Citing a specific example, Koçiu explained: “Let me give you an example: if a basic consumer product currently costs 120 lek, reducing VAT to 6% would bring its price down to 106 lek, representing a saving of approximately 11.7%.”
Koçiu said the government aims to complete pension reform by 2027, with the goal of raising the minimum pension to 40,000 lek (€400) by 2029, describing this as a moral obligation towards older people and pensioners.
She noted that the budget will provide for a twofold increase of the monthly bonus paid to pensioners receiving full pensions, including those who have completed the required years of service. The monthly bonus will rise from 1,800 to 3,600 lek, while the supplement for rural pensioners will increase from 1,000 to 2,000 lek.
“Another new measure concerns the annual pension indexation, which usually took place in October. This year, pensions were indexed in July, while next year the process will begin in April,” Koçiu said.
Koçiu also outlined new family and education policies, including the “After School” programme running until 5 pm, regular monthly financial support for young children in addition to the birth bonus, and 4,000 subsidised housing loans. These will carry 0% interest for loans of up to €60,000 and 3% interest, backed by a state guarantee, for amounts of up to €200,000.
She added that students from economically disadvantaged families, around 5,400 in total, will see their monthly financial support increase from 10,000 to 25,000 lek.
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