What has been set as a priority by Government with next year's budget

Kosovo's government has approved the draft law on budget cuts for the 2019 budget, where the budget is expected to be 2 billion and 370m euros.

This budget project envisions economic growth of 4.7 per cent in 2019. Meanwhile, the increase in basic pensions of 20 per cent and those of contributors of 15 per cent is envisioned, while growth and priority for Government, as said, will be protection, order, health, education and the environment.

During the bill's presentation, Finance Minister Bedri Hamza has stressed that preparations for this 2019 budget proposal have been conducted in accordance with legislation and are in line with all of our country's financial and economic parameters.

“Mbi budget revenues we also have planned admission from financing and that worth 421 million net, including 121 million loan projects under the clause, 54 million regular credit projects and 140 million from liquidation funds. While, 135 million of the direct debt instruments and this above obligations to settle existing debts, which is 50 million for 2019. Therefore, budget revenues for financing amount to 2 billion and 370m euros, and this has enabled us to then have financing of budgetary exits”, he said.

Minister Hamza has said that projections on overall budget revenues for 2019 and the following years are built on tax policy principles, tax management by ATK and Dogan.

He said concrete actions will be taken to reduce informal activity as a precondition for fair competition and equal treatment for all, based on principles. Hamza added that they expect total budget revenues to be worth 1 billion and 949m euros in 2019.

As for non-tax revenues, Hamza said they are expected to remain at the same level over the medium term, both central and local level ones.

Hamza said there will be significant increases in financing public-type capital projects.

The budget expenditures will always be worth 2 billion and 365m euros, which represents an increase of 261m euros, or 12.5 per cent more than the 2018 budget. Under economic categories, we have this budget, we have planned growth of 13 per cent of current spending, where goods and expenditures increase by 27 per cent or 72m euros, reflecting the subsonic growth undertaken for Kosovo municipalities, about 10 million increases for essential drugs and other costs in health, and over 20m euros that we have addressed the audience's remarks on problems accumulated for 20 years as a classification case. Subventions and transfers will increase by 16 per cent or 83m euros, where over 30m are dedicated to increasing basic and contributing pensions ... cannot the Government of Kosovo give better news of the category that is most in need, for Kosovo pensioners, than the 15 per cent increase in contributing pensions and 20 per cent increase for basic pensions”, he said.

Finance Ministry head Bedri Hamza has said capital investments have increased by 11 per cent.

The finance minister has said that an important part of capital investments remains projects such as the Pristina-Skopje highway, the start of the Kieva-Zhaq highway, additional financing for the Pristina-Gjilan highway, the continuation of the Pristina-Mitrovica project, the start of the overall rehabilitation of the Elez-Fuash Kosovo railway line, the national stadium, construction of new schools and labs, rehabilitation and expansion of hospital infrastructure, and other investments for improving water and sewering infrastructure.

According to him, they have offered very high growth for local financing, where he said the total grant has increased by 7.1m, for health, 4.9m or 53m euros, and for education of 14.7m euros. He mentioned that Pristina law and Obilic's have been financed for the first time, with a total of 15m euros.

Hamza has also pointed to priorities, saying it is protection, rule of law, education, and so on.

“Institutions responsible for the rule of law sector and defence receive additional financial support of 6 per cent compared to the 2018 budget, reaching and spending for the first time 200m euros. For this sector and not including future implications from the wage law that further prioritize this sector. Compared to the expenses of 2017, we have provided funding institutions of 30m euros, or 17 per cent more”, he said.

Prime Minister Ramush Haradinaj has said this bill is confirmation that it is entering a financial year with clear projections and priorities.

The “is really a confirmation so that we are entering a future financial year with clear projections, priorities are also clear. So it's seen as being given priority or priority protection, is order, is judiciary, it's health, it's education, it's pensions. Based on all that we heard from you so I think we can confirm Kosovo not only a budgetary stability, but also a respect for all mutually agreed priorities during the time of governance and during the time of identifying these priorities”, he said.

Kosovo Security Force Minister Rrustem Berisha has had a request.

Taking into account the comprehensive transformation and reading plan of three bills that are envisioned this year to be completed in the second reading, and taking into account the recommendation of strategic revision of the security sector, where it is envisioned that a budget of 5 million per calendar year or fiscal year be increased. And if we compare the budget of 2018 and 2019, we have an increase somewhere at 5.63 percent or for 3 million, I propose that because of avoiding unnecessary debates in Parliament and not to appear that we in 2019 have not respected this former recommendation we should give a clarification maybe to MPs and others how we think about post-x1>, he said.

The issue has been supported by Finance Minister Bedri Hamaz, who has said it will be reflected before this bill goes to the Assembly.

Meanwhile, Infrastructure Minister Pal Lekaj has requested that a budget code be opened in terms of the implementation units.

I use the opportunity to ask for the Finance Ministry's understanding of a small technical change within the capital structure of the Ministry of Infrastructure. Also, I demand that a budget code be opened with regard to implementing units that I think no project can be developed without implementing”, he said.

Finance Minister Bedri Hamza has said this minister's request will be adjusted as well.

The budgetary division bill for Kosovo's 2019 budget has received the approval of all ministers.