2.4 billion euros budget planned for 21 ministries, project management problem

Despite that, this budget does not expect to be realised through establishing a new tax or increasing existing taxes.

Task Minister of Finance (MF) Lulzim Rafuna said the budget has been prepared for 21 ministries, including decisions made in government.

As he said, the budget is only expected to be processed and approved in Government then in the Assembly.

“Budget is divided on the request of budgetary organisations given the government programme and the priorities Government has had in office for reasons that this budget is prepared according to the situation we are now in the composition of 21 ministries, and every budget organisation has prepared for their budget we have placed in the budget all government decisions, including decisions made in the Government of the Republic of Kosovo, so it is a complete and ready budget to proceed away from”

“Budget has been finalised and this budget must go to Government to be approved to then proceed further to the Kosovo Assembly. As MPs vote, it becomes a law in which everyone will implement that budget, the State Budget Law for 2020. The budget at the MF is final and only the green light sent to the Government of the Republic of Kosovo”, Minister Rafuna has said.

And economics connoisseur Muhamet Mustafa said this budget growth is normal trend, as he says the problem lies in realising capital investments.

Mustafa considers the management of project contracts by ministries a serious problem.

As he says, the small number of ministries in the future government will reduce expenditures, while he points out that the budget will face the problem of the social package and the Law for Salaries.

The budget growth of 3.7 to 2 billion and 400 million is a normal growth trend. The problem is standing in budget spending, especially in realising capital investments. There is an extremely low use of loans. We have seen that contracts that are linked to projects with various international organisations have a very low use after 3-4 years. The use of tools is 20%, meaning a major problem with contract management and those projects. You can see a serious problem here”

“Budget is made for the existing structure of ministries, there will be a radical restructuring of the organisational structure of ministries, there may be reduced expenditures, but the main expenditures are in various projects which are pledged a portion of them especially in infrastructure. The main problem would be to serve social package, and the problem with the Law on Salaries”, Mustafa has said.

Professor Mustafa said that with the government's rapid formation, the confidence of budgetary governance will increase and improve economic growth.

But, he says economic growth relies on increased investments of up to 700 million, and this can be accomplished if expectations end.

He, among other things, invited political parties to form new institutions as soon as possible, as his trend of migration is a serious and problematic situation, reports EO.

“Budget inherits pronounced problems that need to be managed. The problem is how the government will be formed. If a government will soon be formed which can turn from heavy expectations in the economy plays an important role. But there is both a pessimism of businesses and consumers if institutions are soon established and the confidence that budgetary and macroeconomic governance will improve will also affect economic growth”.

Economic growth should be based on increased public and private sector investments of some 700 million. This can be accomplished if expectations improve. While consumers increase consumer optimism, it creates a multiplier effect of increasing economic power in Kosovo. Gradually it also improves Kosovo's image in the outside world”.

We can regenerate economic growth, with a sound policy we can overcome an increase of 5th and above. Overwhelming is the trend of population migration, the situation is serious problem, so we have to invite political parties to give the country a government as fast as it can be, Mustafa told EO.