Kosovo’s 2027 draft envisions 300m euros increase compared to the pre-year budget, but economists’ assessments of its content and feasibility are different.
Economist Iron Gashi, show FIVE) in Dukagjin, said that among the main points of the draft budget is the sharing of 1 billion euros for wages and wages, including the 13th public sector wage.
He made it known that from July 2027 an increase in the value of the wage cofficiency from 110 to 120 euros, as well as increased additions and subsidies.
There is no doubt that this budget is the same as others in the early years, as is achieved in the 2026 budget, and the 2027 budget will be the same. The budget for 2027 envisions the 300m-euro increase from last year’s budget law, Gashi said.
He rejected estimates that it is about a social budget, stressing that Kosovo has had high economic growth in the region.
According to Gashi, inflation is also affected by geopolitical developments outside Kosovo’s control, while another element that sets out the 2027 draft budget is capital investments.
This budget is not social. On the contrary, Kosovo continued to have the largest growth in the region. Real economic growth also envisions the estimate of inflation. However, inflation coincides with geopolitical developments that are out of control, but economic growth is real economic growth. This budget for the first time includes capital investments over one billion euros, meaning approximately a quarter of the budget, he said.
On the other hand, economics professor Bashkim Mustafa has had a more critical assessment of the draft budget, saying it is not developmental and that its implementation remains difficult.
Mustafa stressed that year-on-year budget growth is not the main indicator, but the importance is the extent of its realisation and impact on the country’s economic development.
He claimed that Kosovo is facing the largest inflation in the region and the lowest economic growth, referring to the World Bank figure of 3.6 percent.
This is a common budget leak, with a solid growth year-on-year is not relevant to the growth of the budget as much as its implementation. The main problem in current governance now and six years is the realisation of the budget year-on-year to a surplus that exceeds all expectations, while on the other hand it fails to meet the actual needs of both current and real growth economies. Kosovo has been facing the largest inflation in the region in recent years, but we also have the lowest economic growth in the region by 3.6 per cent from the World Bank. This budget is not developmental and does not provide sustainable development, Mustafa said.
Source Layer: Dukeagini