Kosovo’s government approves 2020 state budget, avoiding "financial collapse"

By bne IntelliNews March 10, 2020

Kosovo's government said on March 10 it approved the 2020 state budget setting the deficit at 2% of the planned GDP.

The budget was endorsed with a delay as the country held a snap election in October 2019 and only formed the new government led by PM Albin Kurti four months later. March was the deadline for the 2020 budget to be endorsed, with experts warning that without this, Kosovo could collapse financially.

Total revenues in the 2020 state budget will amount €2.2bn, up 7% from a year earlier, while total expenditures are set at €2.36bn, the government said.

The economic growth for 2020 is projected at 4.2% and an annual inflation at 1.3%.

The budget bill was sent to the parliament for approval.

Kurti promised that the state budget under the new cabinet will be completely reoriented from "unnecessary spending" towards projects that directly reduce unemployment, with a focus on tackling youth and women's unemployment, improving education, health and the military.

The World Bank projected Kosovo to end 2019 with a deficit of below 3% of the country’s GDP.

Related Articles

North Macedonia starts process of issuing six-year Eurobond

North Macedonia has launched the process of issuing a six-year Eurobond to cover budget gaps for 2020 and 2021, local media reported on May 27. The government previously said that the maximum ... more

Economists predict Turkey will see rate cut of 50bp on May 21

Responses from 15 economists surveyed by Reuters produced a median estimate of 50bp for the benchmark rate cut Turkey’s central bank is expected to announce on May 21 (at 11:00 GMT). It would be ... more

After punishing day for lira analysts wonder if Turkey might after all bring in capital controls

As Turkey on May 7 blocked three global banks from trading Turkish lira (TRY) in an effort to stem the slide of the ... more

Dismiss