Over two billion euros' budget questioned

The implementation of Kosovo's budget of over two billion euros for 2018 is questioned by business representatives in the country. According to them, no appropriate steps have been taken by authorities to enable the state such a budget.

In addition, they say, the political agenda has narrowed the targets for a budget of over two billion euros.

Kosovo Government Finance Minister Bedri Hamza in an interview given Radio Free Europe had warned that Kosovo would have a budget of over two billion euros in 2018.

The budget value will be over two billion euros, based on sustainable resources. As for projections we will be careful to comply with the level of economic growth, and normally for some point of percentage will be higher”, Hamza stated.

However, Kosovo Economic Ode Chairman Safet Gerjaliu tells Radio Free Europe that such a budget can be realised, but not under these circumstances when Parliament is in technical form, when it is a new Government or when it is violated, as he says, partnership with international mechanisms.

I want to believe that such a budget is achieved, but under these circumstances I fear it will be very difficult and it will still be a burden that will directly hit the private sector. When added to this is the fact that unconfirmed prolongation of starting to implement the fiscal package 2, then remains to be desired, but hard to realise”, Gerjaliu says.

As long as Kosovo's two billion-euro budget is based on the power of the private sector, according to Gerjaliu, this sector should have support.

To support this sector, Gerjaliu says approval of the Law on Internal Trade is necessary, the Anti-damping Law and the Law on Protection of Local Products.

“Budget is expected to be collected by Kosovo Customs and Tax Administration, which will be a burden to the private sector, but I want to believe that if it's supposed to increase the budget, institutions should do more to support the private sector, and what the private sector requires is this equality like the countries of the region and, above all, have protection”, Gerjaliu says.

The budget of over two billion euros, according to the executive director of the American Chamber of Economics, Arian Zeka, also fails to maintain the high level of informal economy.

He says Kosovo authorities have not shown effective in fighting the economy in black.

“If responsible institutions manage to show more concrete actions in combating informal economy, which is in alarming numbers for the country the realisation of such a budget should not be problematic. However, with actions shown by institutions in the past in combating the informal economy, which have been flawed actions, this could make us pessimistic about the realisation of a budget of two billion euros”, Zeka says.

As far as informal economics were concerned, government officials had repeatedly warned uncommpromis against this phenomenon. They had declared that as a result of the illegal economy there are millions of euros a year, which are not collected in the state vault.

Meanwhile, various local and international reports had noted that tax evasion in Kosovo amounts to over 30 percent.

Kosovo's budget was also in 2017, with over two billion euros, which was the highest since the post-war in Kosovo.