Spending on social protection, most of which goes towards pensions and financial assistance, will account for a smaller share of the state budget in 2027, although it remains the largest category of public spending by government function.
According to draft budget figures, social protection’s share of total budget spending will fall to 26.2% next year from 27.3% this year, a decline of 1.1 percentage points.
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Social protection mainly covers spending on pensions, financial assistance and support for vulnerable groups. Although it remains the largest budget category, its funding will account for a relatively smaller share of public spending.
The decline in its share does not mean a reduction in funding in absolute terms, but indicates that social protection will receive a smaller proportion of next year’s budget than in 2026.
By contrast, spending on defence and the armed forces will rise from 4.8% of total budget spending in 2026 to 6.3% next year, an increase of 1.5 percentage points.
In 2027, military funding will account for a larger share of the budget, while the share of spending on social functions will decline.
The same trend can be seen in two other sectors important to the population’s well-being. Healthcare spending will account for 8.8% of the total in 2027, down from 9.2% in 2026, while education spending will fall from 8% to 7.5%.
Together, social protection, healthcare and education will account for 42.5% of public spending in 2027, down from 44.5% in 2026, a decrease of 2 percentage points.
Economic affairs will also account for a smaller share of the budget, falling from 9.4% to 8.4%, as will general public services, from 7.7% to 7.1%, and public order and safety, from 6.3% to 5.8%.
Meanwhile, other unclassified spending will rise from 21.9% to 24.5%, accounting for almost a quarter of next year’s budget.
Experts are concerned that the continued neglect of education is also creating problems in asset management. For example, the government is investing in railway construction and seeking to equip the military with modern equipment, but both sectors face significant staff shortages. Sources at the Ministry of Defence said that some artillery equipment cannot be operated by current personnel.
The military now needs engineers and technology workers more than physical training, as the new equipment is controlled by software. Meanwhile, as plans advance to build modern railway lines, there is an urgent need for personnel who can manage modern systems, expertise the country entirely lacks.
Infrastructure investments for which the necessary management skills are lacking risk deteriorating because of a lack of knowledge. This applies across all sectors. Throughout the transition period, Albanian governments have invested far less in education than the region and the EU, creating a gap between the educational qualifications of the workforce and the country’s needs./ Monitor
