Defence Budget: 58.9 billion Lek or 2.12% of GDP

Published: Thursday, 20 November 2025 12:33

 

The 2026 Defence Budget was presented in the plenary session of the Albanian Parliament by Minister of Defence Pirro Vengu. Following discussions, the budget was approved in principle on 20 November 2025 with 83 votes in favour and 32 against, marking an important step towards strengthening national defence and enhancing operational capabilities.

The budget represents a major shift in the modernisation of the Armed Forces, the revitalisation of the defence industry and the strengthening of civil emergency capacities, while increasing Albania’s contribution to NATO and European security. It includes a 12 % increase compared to 2025, reaching 58.9 billion Lek or 2.12 % of GDP.

A substantial share, 13 billion Lek, is allocated to uniformed personnel, including salary increases, improved living conditions and new career opportunities for young professionals.

A total of 16.3 billion Lek is designated for boosting operational readiness, covering equipment, logistics, training and participation in international missions.

Nearly half of the budget, 29 billion Lek, is allocated to capital investments aimed at technological modernisation, the development of the Made in Albania defence industry and the digitalisation of combat units. For the first time, Defence is also becoming a source of revenue and development, generating 326 new jobs and returning millions to the economy through production, salaries and investments.

The domestic defence industry continues to advance, producing ammunition, drones, anti drone systems and armoured vehicles.

In the field of civil emergencies, 4.3 billion Lek are planned for the establishment of two new regional centres, the purchase of two firefighting aircraft and the strengthening of prevention and response capacities.

Minister Vengu emphasised that the budget reflects the vision of a stronger and more reliable state.