9 hours agoGAP Institute's new report: Kosovo municipalities overloaded by unfinished debt
Periskopi(a year ago)
(a year ago)The GAP Institute has published the report today “in search of a solution: Final problems in municipalities”, which highlights the disturbing size of the financial burden that is weighing on Kosovo municipalities as a result of judicial and final obligations. According to the report, during the period 2022 2024, municipalities have paid over 163m euros for these obligations, seriously jeopardizing [...]
According to the report, during the period 2022 2024, municipalities have paid over 163m euros for these obligations, seriously jeopardising their functioning and capacity to carry out development projects. In some cases, municipalities have been forced to seek assistance from the central level, while others have suspended or gave up planned capital investments.
Total spending has increased significantly in all municipalities, regardless of their size, proving that the problem has spread throughout the territory.
Obligations stem not only from collective contracts in the education sector, but similar agreements in health. One of the key factors that has contributed to the growth of these obligations is the 2008 Government of Kosovo, which envisions additional payment for education workers on the basis of the qualification level.
In addition to the education and health sector, more and more compensation requirements are being submitted by civil servants on issues such as work experience, supply, inflation, and transportation expenses. During the year 2024, a considerable number of municipalities have reported that household spending has exceeded personal revenues or even capital investment expenditures.
In addition to existing obligations, municipalities are also facing a significant increase in accounting obligations, financial claims currently under way at around 208m euros, mainly related to capital projects.
The GAP Institute stresses that coping with this financial burden requires a coordinated response between local and central government, since most obligations stem from decisions, contracts and laws adopted by the central level.
In this regard, the report's main recommendations are:
• The Kosovo government take over executing the payments stemming from judicial decisions;
• Revise the Law on Salaries, in line with the Constitutional Court's decision on work experience;
• Clearing the 2008 decision on teaching qualifications;
• The municipalities get involved in negotiating processes and drafting any new law or decision that could create financial implications for the local level. /Periscope/
