Revenue in the State Budget, January – April 2023, Level of Implementation

The State Budget collected 206.5 billion Albanian lekëë(ALL) in the first quarter of 2023, which is an increase of 9.7% compared to the same period of the previous year.

The January-April 2023 quarter marked tax revenues amounting to 136 billion ALL, which is 7.4% higher than the same period a year ago, and 0.8% higher compared to the quarterly plan.

Non-tax revenues experienced a decline of 0.6% compared to the fourth quarter of 2022 but showed an increase of 1.4% from the plan.

The income from aids continues to remain at high levels compared to 2022, but it is 18.4% less than the plan for the first quarter of 2023.

Source: MFE
Comments and Analyses: Open Data Albania

Source: MFE
Comments and Analyses: Open Data Albania

Source: MFE
Comments and Analyses: Open Data Albania

The fiscal category that has had the most positive impact on the growth of budget revenues is the Special Funds, with a respective increase of 15.3% compared to the previous year and 7.6% growth from the plan. This is thanks to the change in the minimum wage, which was 30,000 ALL in January-March 2022 and 32,000 ALL in April 2022, increasing to 34,000 ALL in January-March 2023 and 40,000 ALL in April 2023. By increasing wages, the revenues from Health Care and Social Insurance Obligations have also increased. Salaries have also experienced growth in April, but their full impact will be seen in the following months.

Source: MFE
Comments and Analyses: Open Data Albania

Source: MFE
Comments and Analyses: Open Data Albania

Local Government Revenues for the four-month period continue to be below the planned level by 24.1%. Specifically, they are 20.8% lower than the first four-month period of 2022. The municipalities collected 9.15 billion ALL in revenue.

Source: MFE
Comments and Analyses: Open Data Albania

In total, Taxes and Customs provided approximately 136 billion ALL for the State Budget in the January-April 2023 period, which is 7.5% higher compared to the same period in 2022 and a 0.8% increase compared to the plan.

The State Budget exceeded the plan for corporate income tax revenue, achieving a realization rate of 135%. There was also an exceeded target for Personal Income Tax by 9.2% and Customs Duties by 8.4%.

On the other hand, the fiscal indicator, National Taxes, and other taxes recorded a low revenue realization rate for the four-month period, specifically 72.4% (collecting 12.8 billion ALL compared to the planned 17.7 billion ALL).

Source: MFE
Comments and Analyses: Open Data Albania

Source: MFE
Comments and Analyses: Open Data Albania

In more detail, net VAT revenues have declined by 0.5% in the first four months of 2023 compared to the same period in 2022. Compared to the plan for the four-month period, there is a shortfall of 2.8%. The decline has been influenced by reduced revenue from customs, indicating lower imports. However, VAT revenues from domestic taxes have increased by 10.8%. This suggests that domestic consumption has not decreased, despite the reduced imports.

Source: MFE
Comments and Analyses: Open Data Albania

Non-Tax Revenues were realized at a rate of 101% for the four-month period of 2023. Out of the planned revenue of 7.75 billion ALL, 7.86 billion ALL were collected. The lowest level of realization was observed in revenue from service fees, where 808 million ALL were collected compared to the planned 1.03 billion ALL.

Source: MFE
Comments and Analyses: Open Data Albania

In more detail, Dividend Revenues have shown an increase compared to the previous four-month period and the same period two years ago. The year 2014 marks the highest collected amount in the budget from dividends for the January-April period, but this coincides with an atypical situation where the dividend tax was reduced from 15% to 8%, encouraging declaration and liquidation.

In the first four months of 2023, the state budget collected 18.5 million ALL from dividends.

Based on Law No. 8438 “On Income Tax,” amended on November 25, 2021, the dividend tax rate for undistributed profits is 8%. The legal obligation for declaration and payment of dividend tax is until August 20. Until April 2023, based on the collected dividend amount, it is estimated that the undistributed profit amounts to 231 million ALL.

Source: MFE
Comments and Analyses: Open Data Albania

Open Data Albania, within the framework of transparency, publishes articles with analyses on Revenues, Expenditures in the State Budget, and others related to economic changes taking place in the country, in the sections of Economy and Public Finances.

Download excel: Revenue in the State Budget, January – April 2023, Level of Implementation
Comments and Analyses: Open Data Albania
Contributed by: Ilir Brasha
Translated by: Etleva Pushi