3 minutes agoPandemia damaged budget for 133m euros
Periskopi(6 years ago)
(6 years ago)Budget revenues in the March-May 2020 period have been lowered for 133m euros, compared to the same period in 2019, become known in the GAP Institute report, published on Sunday. The aim of the report, according to this institute, is to present the impact of the crisis caused by the pandemic COVID-19 in revenues, expenditures and deficit [...]
Budget revenues in the March-May 2020 period have been lowered for 133m euros, compared to the same period in 2019, become known in the GAP Institute report, published on Sunday.
The aim of the report, according to this institute, is to present the impact of the crisis caused by the Pandemia COVID-19 in revenues, spending and fiscal deficit of 2020, as well as the restrictions and opportunities the Government of Kosovo has to address the budgetary crisis.
“in the March-May 2020 period, when most activities in the private sector and public sector were halted in Kosovo due to COVID-19, budget revenues were for 133m euros (28.2%) lower in the same period of the year, while spending for 4.7m euros (1%) lower. The decline of revenues in addition to increased spending will result in budget deficit rules for the first time. Despite the deficit's growth, Kosovo is expected to have the lowest level of public debt in the region”, says the report “Change of COVID-19 in the Kosovo budget”.
The decline in capital investments, according to GAP analysis, has to effect in reducing economic growth. The institute warns of risks stemming from the increased emphasis on subsidies being made in order to help the private sector.
“Although necessary, increasing subsidies as one of the less legally regulated categories can create room for abuse of public money”.
The GAP in the report has cited the approval by the government of the Pacific Emergency Fiscal Government, worth 179.6m euros, respectively, for addressing problems caused by COVID-19.
Likewise, the second package for economic recovery, where within two years (2020-2021), plans to mobilise around 1.2 billion euros. For both packages, the report recommends co-ordination of policies between the Government and the Kosovo Assembly.
Because of legal restrictions, the Fiscal Emergency Package and the Recovery will not be fully managed without the involvement of the Kosovo Assembly. In addition to the need for approval of the Parliament for any transfer exceeding 25% of a budget division of the relevant institution, the inclusion of the Assembly will also be needed for the adoption of new credit agreements with 2/3 of MPs' votes. In the event of defaulting on credit deals, public spending will fall and this will affect further economic decline”, the report says.
