FLASH
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So, in 2024, the government not only paid less than half the value as a percentage of total pension expenditures, compared to 2013, but also as an absolute value, it paid 4.477 billion lek or 10.43% less than the government paid in 2013....
While total government revenues in 2024 increased by about 700 million euros compared to 2023, exceeding the government's initial plan for 2024 by about 350 million euros, revenues from social security contributions for 2024 were realized at 139.4 billion lek, with an excess of 2 billion lek or 102% compared to the plan, while overall pension expenditures were realized at 177.8 billion lek, or 0.2 billion less compared to the plan, despite the 4.1% indexation and the bonuses given.
The increase in social security revenues, as stated by the leaders of the Social Security Institute themselves, has come mainly due to the increase in salaries, while the failure to realize pension expenditures has come as a result of Prime Minister Rama's fear or hesitation to increase the level of pensions or social assistance even slightly.
Compared to 2023, as shown in the table below, social security revenues in 2024 increased by 14.772 billion lek (about 151 million euros) or 11.85%, while total expenditures for the pension system increased by only 7.599 billion lek (77.5 million euros) or 4.46%. So, pension expenditures as a percentage increased by 37.6% of the increase in revenues from social security contributions.
The deficit in social security revenues compared to expenditures in 2024 compared to 2023 decreased by 7.2 billion lek (73 million euros), or about 15.73%.
As shown in the table, in 2024, pension system expenditures were covered to the extent of 139.4 billion lek or 78.39% by the income from taxpayers' social security contributions, while the government covered only 38.4 billion lek or 21.61% of these expenditures. Meanwhile, in 2023, the government paid 45.6 billion lek or 26.79% of the total expenditures for the pension system.
So, during 2024, Prime Minister Rama paid 7.2 billion lek or 73 million euros less for pensions than in 2023, to cover the deficit created by the revenues collected from taxpayers' own social security contributions. In 2023, budget expenditures for pensions were 24.39% of total government expenditures, while in 2024 they were 23.06% of total budget expenditures or 1.33% less.
For information, below we are making a comparison of budget revenues and expenditures for social security in 2024 with 2013.
As shown in the tables below, in 2013 the government paid 42.9 billion lek or about 45.66% of total social security expenditures, while 54.34% of these expenditures were covered by income from taxpayer contributions.
So, in 2024, the government not only paid less than half the value as a percentage of total pension expenditures, compared to 2013, but also as an absolute value, it paid 4.477 billion lek or 10.43% less than the government paid in 2013.
Below we present the level of pensions in other countries in the Western Balkans region.
In Albania, the average pension is 165 euros per month.
In Kosovo, the average pension is 228 euros per month or about 138% of the average pension in Albania.
In Bosnia & Herzegovina, the average pension is 340 euros per month, or about 206% of the average pension in Albania.
In North Macedonia, the average pension is 405 euros per month or about 245% of the average pension in Albania.
In Serbia, the average pension is 433 euros, or about 262% of the average pension in Albania.
In Montenegro, the average pension level is 450 euros per month or about 273% of the average pension in Albania.
Can pension levels in Albania be brought closer to those in other Balkan countries?
All possibilities are.
What about the will?!
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