Macedonia and Albania approve 2026 budget revisions to fund investments

The governments of North Macedonia and Albania have each approved changes to their 2026 state budgets aimed at expanding public investment.

In Macedonia, the Finance Ministry presented a rebalanced budget with total revenues revised to 379.2 billion denars and a deficit of 46.1 billion denars (4.1% of GDP). Capital spending rises by roughly 5.8 billion denars, reaching about 46 billion denars and targeting projects such as the construction of Corridors 8 and 10‑D, the Skopje‑Blace highway, railway upgrades, water‑treatment facilities, waste‑management systems, energy‑efficiency measures and school renovations. The additional financing will be covered through a mix of internal and external borrowing.

Albania’s budget for 2026 shows public investment allocations increased to 179.8 billion lek, up 12.2 billion lek from the original macro‑economic framework. Capital expenditure now accounts for 6.5% of GDP, funded mainly by domestic sources that grew by 14.3 billion lek. Foreign financing fell by about 2.1 billion lek, largely because of reduced funding for the energy sector. Funds linked to the EU’s New Growth Plan dropped slightly, while the reconstruction fund remains at 5 billion lek, fully state‑financed. Officials noted implementation challenges, citing low capital spending early in 2026 and concerns over corruption affecting infrastructure projects.