Today, GAP Institute organized a roundtable discussion where it presented the findings of the new report “The need for establishing an Independent Fiscal Institution in Kosovo.”
Rrona Zhuri, from GAP Institute, presented the report’s findings, emphasizing that Independent fiscal institutions around the world play a significant role in monitoring fiscal policies, maintaining fiscal stability and preparing and/or monitoring macroeconomic forecasts. In Kosovo, over the years several challenges have emerged in the budgetary and fiscal processes such as non-compliance of medium-term budget documents with the annual budget and fiscal and budgetary costing of new policies, without any in-depth analysis. GAP Institute proposes three potential options for the establishment of an independent fiscal institution that can be adopted in the case of Kosovo: 1) Independent fiscal institution as a standalone institution, 2) parliamentary office under the Assembly, or 3) fiscal institution under the National Audit Office. Furthermore, the establishment of such institution should be done according to the minimal requirements set by the relevant directives of the European Commission, and according to the main principles set by the OECD such as: independence and independent recruitment processes.
Ms. Sanja Madzarevic, Senior Economist for Western at the World Bank emphasized that the principles with which independent fiscal institutions should function are independence, open communication and accountability, as well as open access to information. Mr. Abdylmenaf Bexheti, Member of the Fiscal Council in North Macedonia, estimated that Kosovo has the advantage of establishing a fiscal council due to the large fiscal space, i.e. the low public debt. The independence, integrity, competences and professionalism of the persons chosen to act in this institution must be key. Ms. Hykmete Bajrami, Head of Parliamentary Committee for Oversight of Public Finance, stated that before the establishment of such an institution, there must be a broad public debate to achieve consensus and commitment that the recommendations given will be taken into consideration. Ms. Vlora Spanca, Auditor General, National Audit Office in Kosovo, added that the state must have accurate data for the better management of the state budget and that Kosovo needs to strengthen existing mechanisms for more budgetary controls.
To read the full report click here.