Hamza: Economic growth will be accelerated, in 2020 it will be 4.7 %

Kosovo successfully continues to have macro-fiscal stability where, as a result of this 2020-22 cost-time framework, it is built on macroeconomic scenarios envisioning accelerated growth in the country, which reflects the most optimistic expectations for growth of exports and investments. In 2020, real economic growth is expected to be around 4.7%”, the BQC media communiqué said.

As in 2018 and 2019, even in the years to come, it is said in communiques, despite the increased budget growth there will be no burden for citizens of the Republic of Kosovo or businesses in Kosovo.

“There will be no new taxes and there will be no increase in existing taxes, but there will be increases on the basis of economic development, closing the gap in combating the informal economy and increasing discipline in tax administration to be more efficient in collecting revenues. That is why overall budget revenues are expected to grow by 5.3% over the medium term. Based on these assumptions, overall budget revenues in 2020 are expected to be worth 2 billion and 60m euros, while by the end of 2022, they are expected to reach 2 billion and 276m euros”, the BEC communiqué reportedly further.

According to the CEC, revenues from indirect taxes are expected to increase around 5.2% in the medium term. On the other hand, revenues from direct taxes are expected to increase an average of about 6.4% in the medium-term.

“Which is very important we continue to keep the high percentage of capital spending. Capital spending ʹ constitutes a significant share of total spending and is expected to represent around 32.4% of total expenditures. The 2020-22 Medieval Framework Document addresses the needs of public administration reform as well. Funds for the development of the Kosovo Army have also been planned, as well as funds for addressing other requirements, both in health, education, infrastructure maintenance and diplomatic missions. Of course, higher budget growth is planned to be for priority sectors of the government, such as Health, Education, Infrastructure, and so on”, it is said further.

More precisely, announce the BQK:

· In the education sector we have increased funds from 110.8m euros to 2019 to 117.2m euros in 2022 (while we include municipal level this value amounts to 324.8m euros);

·The health sector from 169.7m euros to 2019 to 197.6m euros in 2022 (including the municipal level of this value totaled 264.3m euros),

·Sector defence from 58.69 to 209 in 78.81m euros to 2022;

·Security, law and public security from 203.9m euros to 2019 to 230.2m euros in 2022;

- Economic affairs sector from 445.9m euros to 2019 to 488.6m euros in 2022;

R/E environment sector from 55.2m euros to 2019 to 95.7m euros in 2022.

“As far as financing municipal governance as a result of increased revenues, the total grant value has risen from 180.7m euros in 2019 to 219.4m euros in 2022, an increase of over 21.4%. Growth is also planned for both specific Grants. Part of this framework is the municipal budget for 2020-2022, which was approved at the Grant Commission on April 23rd, 2019. Only next year, the municipal budget rises to 25.69m euros”, said the communiqué.

This document, according to the CEC, also represents the prioritization and realisation of key objectives of the Government Programme.

· These priorities include:

- Education, Employment and Health;

Good Government and Rule of Law;

oh Competing Industries;

Uh Infrastructure and Environment,

European integration, foreign policy and security issues.