This is the economy expert: Pay hikes pose danger to Kosovo

The wage system served by Kosovo's budget needs deep reform. Retirement for wage fund increases beyond budgetary opportunities and the level of economic development endangers fiscal and economic stability.

Economy expert Muhamet Mustafa, former representatives in the Kosovo Assembly, has said wage beneficiaries from the public sector should understand that budget stability and good public services are not possible for a long term if Kosovo has about 60% of the average level of development of the Western Balkans, but a higher average of public sector wages.

He has said that if a promotional wage effect and even a corrective social cohesion could be justified, salaries in Kosovo should not exceed 80% of the region's average and by no means the average of the region.

The subx0> employees in the public sector have a privilege, that of greater job safety compared to those in the private sector, but should never claim higher salaries than the level of economic development and Kosovo's consolidation budget, which, in addition to salaries for employees in this sector, should also provide the development of public infrastructure, education, health, social care”, Mustafa said.

The wage system in this sector, the public sector serviced by the budget, has many deformities inside that must be overcome within a medium-term programme and strategies. It would be necessary for each category to be taken as an average measure in the region and within the medium term to achieve this harmonisation without immediate shocks that could be problematic in cases where the wage must be reduced”, he further said.

Mustafa has said that “against the crackdown on Kosovo's stable budget management, mainly from the ad-hok policies of raising salaries related to the electoral cycle (in exchange for voting) so far has been a success that budget stability” has been maintained.

But this is just coming to test. The benefits of social transfers, pensions and numerous social scheme beneficiaries (the veterans' list rate), for example, but now the increase in wages in the public sector has taken the size of a budget robbery. No matter that there are certain requirements that are right, such as that of medical experts ($600, U.S.) who, if not addressed, will put even more serious risk to the quality of the services at QUK, the salary trend is taking characteristics in an epidemic”, Mustafa said. “Schools are closed for about 10 days. But we're looking at demands one after another in Government, in the Assembly and many wage-growing unions. What has been put at risk is being put in order for wage growth to pass on the percentage of economic growth and productivity. How it said it cannot be sustainable that Kosovo with 60% of the average growth rate in the region ( GDP for one population), but public sector salaries and leaders and many other categories are visible above the average of the region”, he has further said.

According to Mustafa, if the public sector continues to erode from national wealth, it risks the country's construction and stability.

It's time for everything to become transparent here and to undergo an engaged debate and public pressure. The budget and public sector are not owned by the ruling parties and their leaders, nor by employees who receive wages from this budget. Therefore, it has to start with this gradual restructuring and wage adaptation process, why not by the leaders of institutions, ministers, MPs to start from their salaries to average levels with the region, and then to make the same (categori) jobs roughly the same salary as each institution”, Mustafa has said further, says Koha.net.

The ostrich's “game with the salaries of elected public servants and officials must somehow complete”, it has concluded. /Periscopi