Budget failure endangers business default

There were six people employed in this club, but now all the workers are suspended from work and all the service is being done only by the owner of the bar, as Gashi says, is unable to cover the expenses.

“The state employees have subsidised 170 euros per month, but not for the second month, while for rent we have received nothing”, he says.

It was easier when we were completely closed than now with these measures. They've started collecting things and every time there's a problem. Unless the state helps us out somehow or we have to shut down the” bar, Gashi added.

The new measures of the Government of Kosovo, which have entered into force on July 6th, have limited the movement of citizens, as well as closed gastronomy stations between 9:00 and 5:00.

These measures, Gashi says, make them work at losses and not on profit.

The emergency package for the emergency need of citizens and businesses worth about 180m euros was approved in March by last year's government, led by Prime Minister Albin Kurti.

Of this amount, 61m euros have been earmarked for workers' salaries -- 10m euros for exporter companies, 15m euros in credit guarantees -- up to 10 thousand euros for micro-convention and self-employment, and some other relief measures such as rent payment and release from tax obligations.

But that these measures of this emergency fiscal package were not implemented overall.

Finance Minister Hykmete Bajrami in an interview for Radio Free Europe has said the Government of Kosovo does not have enough means to implement, without a review of the budget, which has already been submitted to the Kosovo Assembly.

Even Deputy Finance Minister Agim Krasniqi told Radio Free Europe that to help the economy and protect damage caused by the pandemic, the budget review bill must be adopted as soon as possible.

“The budget revision is not a requirement of any policy, it is not the government's request to implement any project, but it is the immune requirement of citizens, of the economy,”, Krasniqi says.

Budget Review Bill in Deputies' Hand

The budget review bill on 17 June when it was adopted in the government has also been processed in the Kosovo Assembly, but has not gone for approval.

Ismet Krasniqi, secretary-general in the Kosovo Assembly, through a written response to Radio Free Europe said the budget review bill was distributed to Kosovo Assembly deputies on 22 June, as well as the functional commission for reviewing the same.

According to him, the budget review bill could be listed for first review at the plenary session since July 5th, if the Commission for Buxet in the Kosovo Assembly initials the report on this bill.

Free Europe Radio for several straight days has contacted the chairman of the Commission for Business and Transfere, Iron Murati, deputy of the Vetevendosje Movement to get an answer to the issue, but it has not been accessible.

Meanwhile, Mimoza Kusari-Lila, a member of this Commission, has told Radio Free Europe that on Wednesday 8 July the Commission for Buxe and Transfere will discuss the draft budget review law.

Business representatives call on MPs for this bill to pass as quickly as possible on the contrary, businesses are risking closure.

The executive director of the American Chamber of Economics in Kosovo, Arian Zeka, told Radio Free Europe that businesses have not received the assistance promised by the Emergency Fiscal Package, and that this should be enabled as soon as possible.

The private sector is facing more difficulties in the locuses. Businesses have started more difficult the period after the removal of restrictive measures, access to finance remains difficult and they face decline in revenues as a result of reduced consumption and disruption of activities. State intervention, adoption of the budget review bill to be adopted. MPs should put aside their political differences”, Zeka says.

The revised bill envisions 1 billion of 788m euros

The revised bill envisions 1 billion of 788m euros, while the total of revised budget spending is 2 billion and 620m euros.

The revised budget for 2020 addresses all challenges created by the pandemic of the COVID-19 virus and finding a way to finance the implementation of the governing programme.

In addition to the emergency fiscal package, the Kosovo government in the budget review bill has created a fund that will serve for economic recovery.

With the budget review being made, 600m euros have been earmarked to cover the lack of revenues of 232m euros as a result of the pandemic, and also to create the Fund for economic recovery in much of 385m euros.

This fund, Kosovo Prime Minister Avdullah Hoti had said, would fully compensate for the economic downturn he has experienced during this time due to the pandemic.

Kosovo's economy, according to forecasts of international mechanisms, could mark economic declines of over 5 per cent.