“LV's hard to implement, Kosovo budget is limited”

However, according to Zeka, if the state manages to fight the informal economy, which accounts for up to 30 per cent of the Bruto Internal Product in Kosovo, then the state ark will grow and enable the realisation of those commitments.

“Under such circumstances, when the informal economy is on a high scale and the country's budget is limited, implementation of LVV commitments is difficult, without even increasing existing tax rates”, Zeka says of the REL.

Kosovo's 2021 budget amounts to 2.4 billion euros, and over the years there has been no budget greater than this one, which is this year.

Establishment of the Sovereign Fund, the Development Bank of Kosovo, employment up to a full year for all young people (16-18 years), are just some of the economic priorities in planning the LVV programme.

This party has also seen Kosovo's membership in the International Fund for Agriculture Development. In order to ensure a local market, which according to LVV does not despise farmers' labor, this party will make sure that there are land prices for major agricultural and livestock cultures.

In this empowerment, LVV has pledged to fund agriculture annually to up to 100m euros.

The introduction of reference prices for a series of basic agricultural products, including wheat and milk, is also envisioned in the LVV programme, with which he has competed to lead the state of Kosovo.

Former Economy and Finance Minister Haki Shatri in a proposal for Radio Free Europe says the winning party of the February 14th elections in the programme has not determined what mandate it will make those developments in the economy, as according to him, even in better management, hardly those promises can be realised.

Kosovo, he adds, has inherited major economic problems.

The budget of 2.4 billion euros will not be enough to heal these pandemic wounds. There are many difficulties... Unemployment, poverty, all structural economic problems. If 10 percent of the commitments can be made in this year and the years ahead will be good success”, says Shatri.

LVV has also seen social schemes increase. Currently, the social policy base in Kosovo consists of numerous social and pension schemes. These categories include over 420 thousand Kosovo citizens, and up to 400m euros are shared from the state budget each year.

In addition to current schemes, LVV has provided for all children under the age of 2 monthly benefits of 20 euros, while children under the age of 16 will benefit from 10 euros per month.

Meanwhile, all families with low incomes will be repaid according to the family's annual income.

From 50 euros per child if the family has an annual income of less than 7 thousand euros a year, from 100 euros per child if the family has an annual income of less than 6 thousand euros, and from 150 euros for each child if the family has an annual income of less than 5 thousand euros”, the LV programme says.

Regarding these pledges, Zeka says caution should be shown and should always consider the budgetary restrictions the country has.

“should at the same time consider the state's capacity for revenue collection, since we do not want to risk budget stability or in any near future to face increasing business tax obligations in the first place, as this would make the country less attractive for investment”, Zeka says.

The International Monetary Fund, in its latest report, has estimated that Kosovo in 2020 has seen economic declines of up to 6 percent. In the meantime, economic growth has seen between 2021 and 4.5 percent.

This international financial mechanism has also stressed the importance of limiting the growth of salaries in the public sector and assessing the sustainability of the current pension system before the introduction of any change.

The LVV has planned to raise the minimum wage to 250 euros and that this salary will be excluded from personal income tax.

In this regard, Zeka says OECH considers that the minimum wage should be the result of an arrangement between employers and employers rather than state intervention.

If the minimum wage needs to be increased, private sector companies' capacities should be considered. What the government has to do beyond these promises is to create a favourable environment for private sector companies to be empowered beyond”, Zeka says.

Education of the problem of poverty and its reduction also remain the very important criterion of LVV. The Kosovo government, reportedly in the LVV programme, will not allow 100,000 citizens to live on less than 1 euros a day.