GAP Institute and Helvetas/Decentralization and Municipal Support Project (DEMOS) presented today the report "Municipal Budget Planning for 2025," which analyzes the initial phase of budget drafting for the upcoming year in 15 municipalities. The presentation took place during a roundtable discussion attended by representatives from the municipalities included in the report, as well as donor representatives.
Presenting the reports findings, Bekim Salihu from GAP Institute stated that most municipalities included in this report allocate around 50% of their budget to salaries and per diems. All 15 municipalities analyzed in this report have planned to implement 670 capital projects, with a total budget allocation of €88 million. Regarding capital investments, these municipalities have planned have planned to implement 670 capital projects, with a total budget allocation of €88 million. Of this, only €17 million will go towards new projects, while €71 million will be used for ongoing projects from 2024. However, there is still a lack of clear linkage between medium-term priorities and the annual budget. Most municipalities have not analyzed the budget risks for 2025, including inherited contingent liabilities and potential legal obligations.
"It is positive that most projects are planned outside city centers, including locations inhabited by minorities. However, an analysis of the budget hearings and the approved Medium-Term Budget Frameworks (MTBF) reveals low citizen participation, with a significant gender gap in representation, where the majority of participants are men. But a positive step taken by municipalities in relation to budget hearings is the acceptance and inclusion of several citizen requests in the budget planning for the following year," emphasized Salihu.
Drilon Shala, a representative of the DEMOS project, spoke about the support provided by the project in improving municipalities capacities in budget planning, enhancing access to public information, and engaging citizens in decision-making processes. "These efforts have particularly aimed at including and integrating citizens requests, especially those of marginalized groups, into municipal budget planning," he added.
Durim Halilaj from the Association of Kosovo Municipalities highlighted some of the challenges municipalities face, especially in early budget planning, which, in addition to short deadlines, include collective contracts, particularly in the education and health sectors, as well as complaints to the Public Procurement Review Body (PPRB). He also noted that municipalities have made good progress in increasing citizen participation in budget hearings/participatory budgeting.
Municipal officials from the finance and budget departments, as well as other stakeholders, also contributed to the roundtable discussion. In addition to this analysis, the GAP Institute and Helvetas/DEMOS will, in the coming months, prepare a comprehensive report on municipal practices for allocating the budget for capital investments in localities and villages during the period 2018-2023, and will publish a comparative infographic on electoral promises based on fulfilled areas.
You can find the report by clicking here.