Blockade in institution creation also blocks state budget

Because of the failure to function of the Assembly and the Government of Kosovo has been unable to review Kosovo's budget, say leaders of institutions, under which problems have begun in carrying out pre-financed financial obligations.

Outgoing Finance Minister Agim Krasniqi, for Radio Free Europe, has said that the ministry and budgetary agencies have made preparations for this process, but without the establishment of institutions, the revision cannot be completed, which implies not access to tools for ministries, municipalities and all budgetary agencies.

He says, meanwhile, the problems have been presented because of the failure to change some previous laws, under which the withdrawal of financial means is planned. From this situation, Krasniqi says it has been unable to start several new projects, covering expenses for projects initiated earlier.

The concrete case is the AKP's absence of means because it has not been able to change the law on the AKP. And in this case we have planned to allocate 67m euros to the Pristina highway Skopje and 136m euros in regular budget tools. The failure of these means from the budget has forced us to make some cuts so that we do not start new projects and complete the commitments that have come”, Krasniqi says.

Budget review provides opportunities for transfers between sub-programs and budgetary organisations.

Budget organisations are allowed to make internal adjustments that are reasonable to make effective budget executions for the remaining budgetary period.

The biggest consequences of the non-creating Kosovo institutions bear the economy, say experts on economic issues.

The chairman of the Kosovo Economic Ode, Safet Gerjaliu, in a conversation for Radio Free Europe, says that for the Republic of Kosovo, in addition to undermining partnership with international financial institutions, the biggest consequence is the failure to reverse the budget for 2017.

In the absence of revision, Gerjaliu says some projects that are contracted by the public sector, which are realised by the private sector, could be interrupted because they cannot be paid by the Kosovo government.

And until there is no review in this direction, then there will be paid shortcomings, there will be many projects that will be interrupted. That's why I have to get up on party and group interests and think of the state, that our institutions are as quick as possible, because the consequences will be huge:x1>, Gerjaliu told Radio Free Europe.

Gerjaliu expresses concern that the problems raised will be reflected the following year, while the results will be very difficult, he says.

Because if once it creates a credibility and it gets damaged, it's going to take time to recover, and in this direction I believe that in such a situation again, it's going to be commercial banks. Because business must find alternative and if budgetary obligations are not carried out by the state, then the only options will be commercial banks”, Gerjaliu says.

In addition to this year's budget revision process, September is the period when municipalities must complete and hand over to the Ministry of Finance proposals and budgetary division requirements for next year.

However, by the end of October, the government must approve the proposed budget to send to the Assembly, which must be approved by the end of December.