In the first quarter of the year, the Albanian state budget collected 181 billion lek in revenue. While this amount is 10% higher than the same period last year, it still falls short of the government’s projection of 182 billion lek.

Although the gap represents only a 0.5% shortfall, the increase compared to 2023 is significant, with a 10.2% rise in total revenue.

According to figures from the Ministry of Finance, personal income tax contributed to an increase in state revenue, marking a 19% growth over the quarter. In contrast, corporate profit tax fell short, bringing in only 3.4 billion lek—17% below target.

Local taxes also underperformed, with municipalities failing to collect 2.2 billion lek, or 27% less than planned.

Overall, tax revenue fell 10% short of projections. While there has been year-on-year growth, the rate has been slowing down: from 18.5% in January to 12.1% in February and down to 10.2% in March.

In terms of expenditures, the government spent 10.5 billion lek less than planned in the first quarter—a 7% shortfall, mostly due to under-execution of capital expenditures.