The budget for forming military is expected to jeopardise financial stability

The budget for forming military is expected to jeopardise financial stability

The budget for transforming the Kosovo Security Force (FSK) into the military will not jeopardise macro-fiscal stability, no matter how much law package for this transformation has high budget costs. Finance Minister (MF) Bedri Hamza in an interview for EO has indicated he will fulfill all obligations [...]

The package of bills to transform the Armed Forces Security Force has been passed in Government weeks ago. Based on three budgetary statements, in the next three years, around 174m euros will be allocated to the KSF.

The Ministry of Finance will take all necessary actions to ensure sufficient financing for capacity achievement. If there is a need, we will move inside even within the budget structure in order to comply with the” needs.
“Of course there will be additional costs because the number will increase the equipment, but it is a cost that we will model adequate acceptable solutions without risking macro-fiscal stability”, Hamza said.

The government cabinet, which also includes Minsitri Hamza, has also adopted three bills that are considered very important for the reform process in public administration.

Part of that package is the Bill on Salaries, which regulates the wage system and wages for officials and public officials. According to the finance minister, the implementation of the draft, which amounts to the value of 90m euros, has caused trouble in calculating additions.

The process of the law that we go at the maximum cost makes it difficult for us to calculate exactly the additional work because the percentage in certain countries says up to 50%, but is it 10, is it 20, is 30?

If that's not how we say it's the maximum, who take advantage of the extensions what the criteria are, what their number is a few dilemmas, but they're also set for a certainty that the total amount of these additions cannot exceed 8 % then it keeps within the fixed limits, but we appreciate that at the moment the estimated cost of this bill behaves around 90 million euros<1>.

“While in terms of government cabinet salaries, it is known where the deputy rank of the prime minister of Parliament, the prime minister, and somewhere it is scheduled for the minister's salary to be nearly 1,000 and 800 euros”, Hamza said.
Hamza does not clarify whether Government has paid “Bechtel & Enkas” the 53m-euro debt

Minister Hamza in an interview for Online Economics has also spoken of the 53m-euro debt Kosovo Government has on the company “Bechtel & Enka”, as a result of its failure to complete budgetary obligations over time.

Hamza has hinted that although budgetary organisations and line ministries are being seized and the finance ministry is only making payments to obligations issued by regular contracts, contracts in which no debt can be included that a contractor may have to a company, EO reports.

Until this year, around 130m euros in Kosovo's budget have been planned for the six-to-be road in the original contract, this contract will be an addition as a result of additional jobs that were submitted during the execution and I believe some of these obligations will remain under the agreement, even with the first part of 2019. So far it means I'm making payments on obligations from the regular” contract, said Minister Hamza.

Criticised for failing to review the budget, the head of the country's budget has said that this has not been necessary because the positive revenue trend has guaranteed security for the implementation of projects.

The budget reviews usually occur when there is a problem with revenues when revenues are insufficient to finance projects, when we have no problem in this direction and the positive stability and trend of revenues has guaranteed that we have full security to walk in the realisation of the” projects, Hamza concluded.

 

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