Albanian Defence Budget: Lek 21.6 Billion in 2008

Tirana, 3 April 2008. Albanian daily newspaper Shekulli reported that Albania is planning to allocate two percent of its GDP for its military during financial year 2008. Originally, it was planned that Albania was going to start to use two percent of its GDP for its military beginning in year 2010. However, in 2006, the Berisha government decided, unexpectedly, to increase the defense budget to two percent of the GDP. The government was hoping the defense budget increase was going to speed up its receiving an invitation to join NATO at the Bucharest Summit.
During financial year 2008, Albania is planning to spend around Lek 21.6 milliard or Euro 176 millions. Almost 73 percent of the military budget is going to be used for salaries, food, and other operating expenses. The rest of it, around Euro 47 millions, are going to be used for capital investments. However, if the current trend continues, the Albanian military would be unable to use the allocated funds for capital investments.
Albania is obliged to increase its military spending to Lek 26.4 milliards (around Euro 212 millions) in year 2010. Almost one quarter of the military budget should be used for capital investments.
While the money will be set aside for the military, no one expects the Albanian Ministry of Defense is going to use all the allocated funds. In 2006, for example, the Albanian military managed to use only Lek 13.8 milliards, or around 1.5 percent, of the country’s GDP while in 2007 the military used around 1.7 percent of the country’s GDP.
After the invitation to join NATO was received at the Bucharest Summit, the Albanian military is obliged to continue its military reforms, decreasing the number of officers, slowly eliminating the draft, and increasing the number of professional soldiers.
Albania is seeking to purchase western military weapons after ridding itself of Soviet MiG 19 and MiG 21 fighters and fighter-bombers, four Whiskey class submarines, and all its 721 Type 59 main battle tanks. For the moment, the Albanian military is concentrating its efforts on leasing a number of Czech-made light fighter jets (Aero L-159 ALCA) to preserve the flight and fight capability of Albanian Air Force pilots and maintaining its small number of army helicopters (12 Bo 105E-4), a gift from Germany. The most important project is the purchase of four new coastal patrol boats (Damen Stan Patrol 4207) from the Netherlands, a project worth Euro 31 million. The Dutch government is going to finance some Euro 11 million, while the Albanian government is going to contribute the remaining amount.