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Kosova budgetary sustainability and fiscal policy


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  1. Authors:
      • Prof. Ph.D. Myrvete Pantina, Afiliation: University of Prishtina – Faculty of Economics
      • Researcher- agro-economist Faton Osmani, Afiliation: Ministry of Agriculture, Forestry and Rural Development of Kosova

      • 69|75

  2. Keywords: budget sustainbility, Fiscal Policy, revenues, expenditures, deficit, Kosova

  3. Abstract:
    Budgeting is the process of governmental resource allocation in order to achieve specific social and economic goals. Since the governmental resources are scarce in most transitional countries, as is the case in Kosova, they need to be allocated based on priority needs, in order to ensure greater efficiency.
    In post-war Kosova the primary objectives of drafting policies were concentrated around establishing budgeting systems, collecting revenues by means of the tax system and development of a comprehensive reconstruction programme, it could be said that these goals were achieved within a short period of time. When we take into account the fact that the Central Banking Authority of Kosova (CBAK) is still unable to completely manage the monetary policy, and does this only to a certain extent, and the fact that Kosova until now did not have access to additional foreign financing, these elements make it all the more necessary to be more careful in preserving fiscal sustainability, since the fiscal policy, until now, was the sole means of macroeconomic policies at the hands of the government.
    The objective of this paper is to present the proceedings of the Kosova fiscal policy and budgeting during 2000-2007, as well as provide several recommendations which could result in an increased efficiency in fiscal policy by generating budgetary revenues.

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