Kosovo to face a 26 million euro deficit

Prishtinë, Nov 8, 2005 – The Kosovo budget income for the first half of this year was 26 million euro less than foreseen, Kosovar daily “Express” reports. The greatest budget contributor, Kosovo’s Customs Service, collected 10 million euro more than expected, but the other sectors have lagged behind in revenue collection.

Even though the second half of the year is considered as being more favorable in terms of revenue collection, the current trends do not signal much optimism. About 6.5 million euro are foreseen to be collected from taxes on the second mobile telephony operator will not be realized this year.

In addition, the deficit will be further increased by tax return, expected to reach an amount of 14 million euro. On top of all this is a deficit expected in the beginning of the budget cycle, 100 million euro taken from the reserves of previous years.

Express reads that based on these developments the deficit of income is inevitable. The fiscal crisis is most likely to occur by the end of the year.

The attempt of the Kosovo Government to eliminate deficit by applying tax on excess profit of PTK is not certain yet. The expenditure structure is another essential element, considering that €170m has been spent only in December last year.