According to the definition given by NATO, military spending are all capital and current expenditures made for the armed forces, including peacekeeping forces, the Ministry of Defense and other government agencies engaged in defense projects, pre-military forces (if they are trained and equipped with means for military operations) and military air activities. These expenditures include: salaries and wages for military and civilian workers, social support to military forces, maintenance, military researches and development and also military aid.

In this category of expenditures are excluded civil defense and current expenditures made for the previous military activities (such as veteran’s benefits) and destruction of weapons. However, this definition may not apply in all states, since they depend on what items they include in the budget of the military function. Some states may (or may not) include in their budget categories such as: civil defense, police, paramilitary forces, grants for military, military pensions, social contributions, etc.


Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)

In our country, budget defense is administered by the Ministry of Defense (MoD), which consists of administration workforces of the Ministry and General Staff of the Armed Forces. Ministry of Defense has long been part of a general reform, which had as main goal the membership of Albania in NATO. Since 1999, when Albania took MPA-in (Membership Action Plan – Operational Plan for Membership), the budget allocated to defense has been generally increased
 


Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)

Increases were highest in 2006 and 2007; the budget grew by an average of 22% more than a year ago. The year 2009 (year of membership) recorded a high growth, by 17.4%, compared with the year of 2008. It should be emphasized that the budget was a necessity for meeting the challenges and reforms that Albania had taken for NATO membership. Only in 2010, the budget for the Ministry of Finance had a sharp decline.


Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)

In the initial budget, it was forecasted at the level of 25 billion All, but at the Revised Budget in July 2010, the Ministry of Defense funds decreased by 5.2 billion ALL. This led to a 7% decline in defense spending in the first year after accession to NATO.
In 2011, is forecasted a budget of 21.6 billion ALL, or 9% higher than in 2010 or 2.3 times higher than in 2003.

All the information is presented in the table below:


Source: Ministry of Finance
Comments and Analysis: Open Data Albania (ODA)

Notes:

Data for years 2003, 2004, 2005, 2006, 2007, 2011 is taken from Initial Consolidated Budget
Data for years 2008, 2009, 2010, is taken from Consolidated Budget of Normative Act
Data for years 2003, 2004, 2005, 2006, 2007, 2011 is taken from Initial Consolidated Budget
Data for years 2008, 2009, 2010, is taken from Consolidated Budget of Normative Act
Data for years 2003, 2004, 2005, 2006, 2007, 2011 is taken from Initial Consolidated Budget
Data for years 2008, 2009, 2010, is taken from Consolidated Budget of Normative Act