Kosovo: MEF presents Quarterly Financial Report

Prishtinë, May 14, 2006 – Compared to the same period last year the first quarter 2006 has marked a decrease in revenues and an increase in expenditures, Ministry of Economy and Finance (MEF) officials said last week while presenting the Quarterly Financial Report 2006.

According to the report, € 138 million was collected, while € 103 million was spent. Based on these figures, the plan on revenue collection was not implemented as planned, since only 81.5% of the planned revenues were collected.

Lulzim Ismajli, Head of Department of Treasury at MEF, said that the Prishtina-Skopje highway, which was closed for several weeks, was one of the elements that affected the revenue collection.

In this period, the expenditures for salaries and daily allowances were 3.5 % higher than at the same time last year; expenses for goods and services were higher for 8 %, while the subventions and transfers were lower for 10.8 %. The data on capital expenses reach the value of € 8.74 million. The central Government spent € 6.55 million, while municipalities spent € 1.18 million.

According to MEF officials, if revenue collection continues at this pace there will be a budgetary deficit in 2006. The Head of the Economy and Finance Department at the “Shadow Government” of PDK, Bedri Hamza, said the budgetary deficit 2005 was a consequence of the weak management of the Kosovo Government.

According to Hamza, the MEF’s Fiscal Year Report 2005 did not cover self generated revenues incomes, especially in the municipalities, where only € 24 million out of € 35 million were collected.