Uncontrolled spending on state reserves, IMF reacts

International Monetary Fund chief (FMN) in Kosovo, Ruud Vermeulen, in an interview with the newspaper “Zeri” has commented on spending funds from state reserves, attracting one million euros to cover the unpaid bills of Serbs in the north, the report released by the World Bank released by the countries that have scored 9.2 percent progress in employment, and the risk some social schemes can cause the state budget.

To start spending state reserves within a three-month period Vermeulen has advised that their use be limited only to urgent and unexpected spending.

Kosovo's “Budget also leaves aside a small sum that is not reserved and provides the flexibility needed to deal with unforeseen events. In practice, there is much pressure to use this amount to finance new spending initiatives, thus undermining its goal. As a result, a considerable portion of the reserve has already been used at the beginning of the fiscal year. In this context, we think it is important to limit the use of these funds only for urgent and unexpected expenditures”, Vermeulen has said.

He says many countries have a random or unforeseen reserve in their budget to cover urgent expenditures without endangering budgetary plans.