The differences between the Draft-Law and the Law on Budget of the Republic of Kosovo 2017

On December 22, 2016, more than a week before expiring fiscal appropriations for 2016, the Assembly of Kosovo (hereafter the Assembly) discussed draft law on the budget of the Republic of Kosovo for 2017. The Law on the Budget of the Republic of Kosovo for 2017 was approved in two readings which took place in less than 24 hours.

In the second reading of the draft law, the Assembly adopted 60 amendments. With these amendments, the Assembly increased budget ceilings of the central institutions by 27.6 million euro. Most of the budget (97%) was obtained from the Ministry of Finance, respectively from the "Capital investment contingency of the Kosovo Agency of Privatization".

Table 1 Institutions" changes on budget ceilings

The institution which has benefited the most from the changes in the draft is the Ministry of Infrastructure (MI). The budget of this ministry has increased by 11.5 million euro (4%) and this increase is entirely appropriated for capital expenditures. Most of the increase (91% or 10.5 million) is allocated to road infrastructure. After the amendments, MI is going to manage 305.6 million euro (along with investments from investment clause) or 50% of capital investments appropriated for the central level. With the draft law on the budget, MI managed 48% of the central budget for capital investments.

After MI, the Ministry of Culture, Youth and Sports (MCYS) is the ministry which has benefited the most from the amendments in the budget. The budget of this ministry has increased by 4.5 million euro (16%). Most of the increase (84%) is appropriated for capital investments, while 40% (1.8 million) of the increase is dedicated to sports. A structural change with regard to MCYS is that State Archives Agency now will be managed by MCYS. Before it used to be under the management of the Prime Minister Office.

Table 2 Changes in the budget of MCYS

Also the budget of the Ministry of the Environment and Spatial Planning (MESP) was significantly increased by 3.2 million euro (7%). This increase is entirely appropriated for capital investments, while the majority of the budget increase (95%) will be managed by the program for water resources.

The budget of the Ministry of Education, Science and Technology has increased by 2.2 million euro (5%) and the majority of this increase (2.1 million) is for capital investments in primary education.

Kosovo Judicial Council budget for wages and salaries has been decreased by 10,200 euro, while this fund was transferred to the Railway Regulatory Authority to increase the number of staff by four people.

Although the budget for the category of wages and salaries did not increase in these institutions, number of staff allowed has increased for: Kosovo Correctional Service- Ministry of Justice; Tax Administration - Ministry of Finance; Kosovo Police Inspectorate of the Ministry of Internal Affairs; Embassies - Ministry of Foreign Affairs; and Hospital and University Clinical Service. Also in the Ministry of Health, 220 specialists who had been planned in the draft budget to be paid from the category of subsidies, are going to be paid from the category of wages and salaries.

Table 3 Changes in the number of staff