The incumbent government does not proceed with 2020 draft budget, legally binding

Even though the government in office is on the verge of legal deadlines for proceeding the draft budget for 2020, the Ministry of Finance, due to the established political circumstances in the country, has not yet prosecuted the final draft budget for approval in the government.

Although, financial analysts claim the law on public finance management envisions the draft budget being adopted within the government by October 31st and does not envision any different situation in the event it has elections or governments in office.

Finance Minister Lulzim Rafuna's adviser tells Kosovo Press that the Finance Ministry has in time taken all actions and all steps which are envisioned by law, but because of the new circumstances created, especially with the Kosovo Assembly, it has not been processed further on the draft budget for 2020, which is higher than the previous year.

Rafuna: Because of the circumstances created, we still have sent the draft to government

The “has come to draft a draft that we can say is our final draft as finance minister. And all municipalities have approved budgets except for two municipalities that haven't brought them, but in that case there are legal solutions, so we can freely say that we have managed to complete the first draft budget. This has been one of the reasons why we have yet to send to the government, because of the new circumstances created, especially the Kosovo Assembly, because the Financial Management Law, owes us that late until October 31st, to hand over the assembly, but we are talking about when the assembly is existing that in concrete case we don't have”, Rafuna says.

He has given another reason to say how the MF is ready today to send the draft budget to the government, but according to Rafuna after the 6 October elections, a new situation has been created, which according to him, the two parties that are trying to coalition and come to the government are also aimed at reducing ministries.

Rafuna: Reducing ministries is moving us to a new budget position

Now after creating new circumstances, we have failed to have a clear structure of ministries, because we have publicly heard that there will be reductions of ministries, in fact it is good to do so. And this whole set of us as the minister of finance moves us into a new position because budget codes are going to be changed, it's going to change the entire structure of ministries and budget structure, so that's why we didn't get to the final figure and send it away to government”, he says.

Berat Thaqi, political analyst at the GAP Institute, says of Kosova Prees, that the incumbent Government is obliged by law until October 31st to proceed with the 2020 draft budget, despite circumstances created in the country.

He said: The incumbent government has obligation to welcome 2020 draft budget

We have a government in office and under the Finance Management Law, they have until October 31st to carry out procedures within the government, adopt and be a draft public, but then it's in the hands of the assembly to look at it and make their demands. Technically, Kosovo Assembly deputies have the opportunity to make demands. A practice has been followed that new projects cannot be proposed without the source of funding being found that will remove several potential projects in the draft law and introduce new projects... So, next week this deadline passes us and the Government of Kosovo is obliged to prepare draft”, Thaqi says.

If budgetary change is required for reducing ministries, Thaci says it is then resolved between the future finance minister and the new parliamentary budget and finance commission.

Thaci: If there are fewer ministers, the Board Commission may make changes

The future minister of finance with his staff must closely co-operate with the Commission for Business and Finance in the Kosovo Assembly and change the billboards to Kosovo's draft budget. Tíi changes expectations and if we have fewer ministers and deputy ministers, then we will have additional means, and that's not a big problem. That means we're going to have additional means for capital investments, for economic development that is quite positive, so that also needs to be respected. Very likely and it is expected that the future government will make changes”, he claims.

While leaders of the Vetevendosje Movement, which may be leaders of the future government, have declined to comment on the budgetary process for 2020.

Kosova Preris has contacted LV's leadership member, Albulen Haxhiu, but did not want to talk about the issue.

Whether there could be a budgetary crisis, Berat Thaqi says that by the end of the months of February, without the constitutionalisation of the Parliament being made at all, public institutions can function and pay fees.

Likewise, Luluzim Rafuna, who says the budget crisis could only occur in April if there is no new government and budget law is not approved. For the month of January 2020, budgetary division could take place by1/12 of the budget law 2019.