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Business and Economics > Budgeting

You are looking at 1 - 7 of 7 items for :

  • Type: Journal Issue x
  • Kosovo, Republic of x
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Cover IMF Staff Country Reports
Republic of Kosovo: 2024 Article IV Consultation and Third Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility-Press Release; and Staff Report
International Monetary Fund. European Dept.
This paper presents Republic of Kosovo’s 2024 Article IV Consultation and Third Reviews under the Stand-By Arrangement (SBA) and the Arrangement under the Resilience and Sustainability Facility (RSF). Kosovo’s economic performance has been strong, with growth accelerating in 2024 and inflation falling sharply. The near-term outlook is favorable despite some downside risks. The authorities continue to show strong performance under both programs. All quantitative targets and structural conditions for the completion of the Third Review under the SBA were met. Most RSF Reform Measures have been completed. Fiscal policy should continue to balance sustainability and development objectives and be framed within a solid, rules-based fiscal framework. The 2025 budget envisages a fiscal impulse with full-year implementation of spending measures announced in 2024, a proposed increase in public wages, and the expected improvement in public investment execution. Structural reforms are urgently needed to raise potential growth. Priority should be given to further advancing green reforms and decarbonization, implementing policies to boost female labor-force participation, attracting foreign capital—including from the diaspora—into productive sectors of the economy, and accelerating digitalization.
Keywords:
Kosovo authorities; governance reform; EBRD's operation; RSF implementation; CBK governance; EIB's involvement; Budget planning and preparation; Income; Europe; Global; Middle East; Western Europe
Cover IMF Staff Country Reports
Republic of Kosovo: Second Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility and Request for Modification of Reform Measure-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo
International Monetary Fund. European Dept.
This Selected Issues paper presents Republic of Kosovo’s Second Reviews under the Stand-By Arrangement (SBA) and the Arrangement under the Resilience and Sustainability Facility (RSF) and Request for Modification of Reform Measure. Kosovo’s economic activity continues to expand at a robust pace, despite a challenging external environment, and inflation has declined markedly. The Kosovo authorities continue to advance their economic program and structural reform and climate agenda, supported by the SBA and the Arrangement under the RSF. Program performance under both arrangements remains strong. The authorities are advancing an ambitious green agenda. The RSF has supported efforts to strengthen the regulatory framework and increase policy space to attract private investment into green energy. The successful completion of a pilot competitive auction for solar electricity generation and a first auction for wind electricity generation are important steps in the authorities’ plan to expand renewable energy capacity. Reducing emissions and improving air quality, increasing energy efficiency, improving targeting of energy subsidies, and enhancing energy security are important goals of Kosovo’s green agenda.
Keywords:
RSF ARRANGEMENT; government liquidity buffer; CBK balance sheet; Kosovo authorities; budget revenue; Budget planning and preparation; Fiscal risks; Europe; Global
Cover IMF Staff Country Reports
Republic of Kosovo: Technical Assistance Report-Public Investment Management Assessment Update and Climate PIMA
International Monetary Fund. Fiscal Affairs Dept.
This paper highlights the details of the technical assistance (TA) report on Public Investment Management Assessment (PIMA) Update and Climate PIMA in the Republic of Kosovo. Public investment in Kosovo occurs in a fiscal environment where the general government deficit and debt is generally well contained. The overall strength of Kosovo’s public investment management institutions has increased—though the design of these institutions is stronger than their effectiveness in practice. The failure to undertake robust and consistent feasibility studies prior to project initiation is a key weakness, leading to delays and problems in project execution. In the implementation phase, design is stronger than performance, in part due to implications of weaknesses early in the planning stage. Like most other countries, Kosovo is at an early stage of incorporating climate aspects into public investment management. Dedicated effort and leadership from the Ministry of Finance, Labor and Transfers and the Ministry for Environment, Spatial Planning and Infrastructure will be key to boosting infrastructure outcomes.
Keywords:
Public investment; climate change; public finance.; scores compare; Kosovo Climate-PIMA; capital investment; project appraisal guideline; PPP assessment manual; government policy; Budget planning and preparation; Public investment spending; Capital spending; Infrastructure; Europe; Eastern Europe; Southern Europe
Cover IMF Staff Country Reports
Republic of Kosovo: First Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility and Request for Modification of Reform Measure-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo
International Monetary Fund. European Dept.
This paper presents Republic of Kosovo’s First Reviews Under the Stand-By Arrangement (SBA) and the Arrangement under the Resilience and Sustainability Facility (RSF) and Request for Modification of Reform Measure. The authorities are making very good progress in implementing their policy agenda under the Fund-supported arrangements. The SBA continues to provide a key policy anchor, and the RSF continues to support Kosovo’s climate change mitigation and adaptation efforts including by catalyzing additional climate financing. Program ownership remains strong. All quantitative performance criteria and indicative targets have been met. Structural benchmarks under the SBA and reform measures under the RSF have been implemented. Actions required for subsequent reviews are progressing as expected or have been strengthened. The RSF is laying the foundations for greener and more efficient energy markets and supporting reforms in other areas. The RSF increased the policy space to strengthen the regulatory framework to attract private investment into renewable energy, improve energy market functioning, expand green electricity generation, reduce air pollution and emissions, strengthen energy security, improve the targeting of energy subsidies, and increase preparedness for the implementation of carbon pricing.
Keywords:
RSF reform measure; budget spending; revenue performance; private sector consumption; RSF arrangement; budget revenue; management framework; Budget planning and preparation; Pensions; Pension spending; Aging; Global
Cover IMF Staff Country Reports
Republic of Kosovo: Request for Stand-By Arrangement and an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo
International Monetary Fund. European Dept.
This paper presents Republic of Kosovo’s Request for Stand-By Arrangement (SBA) and an Arrangement under the Resilience and Sustainability Facility (RSF). The SBA is expected to be precautionary and will provide liquidity in case downside risks materialize, including from Russia’s war in Ukraine. The RSF will provide affordable financing to support Kosovo’s climate change mitigation and adaptation efforts, including through greener electricity production and more efficient energy use, and is expected to catalyze other climate financing. Kosovo is the first European country to access the RSF. The authorities’ prudent fiscal policies and broadly targeted support framework helped rebuild fiscal space while mitigating the impact of the cost-of-living crisis. A strong policy mix is now needed to sustain the recovery and achieve reform objectives. Abiding by the fiscal rule deficit ceiling will provide a moderate impulse to activity in 2023, helping the economy soft land, while contributing to the anchoring of public debt in the medium term. Increasing medium-term growth prospects and reducing the country’s dependence on diaspora flows will require advancing the structural reform agenda and closing infrastructure and governance gaps.
Keywords:
RSF financing; Kosovo authorities; climate change mitigation; CC strategy; RSF arrangement; structure favors investment project; RSF reform measure; Climate change; Greenhouse gas emissions; Budget planning and preparation; Europe
Cover IMF Staff Country Reports
Republic of Kosovo: 2021 Article IV Consultation-Press Release and Staff Report
International Monetary Fund. European Dept.
This 2021 Article IV Consultation determines that Kosovo’s people and its economy experienced a return to a certain degree of normality in 2021. Increased vaccination rates allowed a relaxation of stringency measures, supported mobility, and created the conditions for a resumption of diaspora travel. The fiscal response to the pandemic has been broadly adequate. Moreover, fiscal policy needs to return to a supportive stance in 2022. Focus, composition, and transparency of public spending needs strengthening including supporting economic resilience. While the objective to intensify vaccinations is both appropriate and commendable, intended policy actions under the “Economic Revival Program” need to be better defined, new social transfer programs should be more targeted, and the growth of existing transfers needs to be contained. Kosovo’s intentions to reduce carbon emissions are commendable. A credible climate and environment mitigation strategy should be centered around carbon pricing, while allocating its proceeds to investment in green projects and to mitigate the impact of higher energy prices on vulnerable households.
Keywords:
fund RELATIONS; CBK balance sheet; growth engine; IMF staff calculation; Policy discussion; Fiscal rules; Budget planning and preparation; Wages; Europe
Cover IMF Staff Country Reports
Republic of Kosovo: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo
International Monetary Fund. European Dept.
Kosovo has been hit hard by the COVID-19 pandemic. Despite policy support, economic activity is estimated to have fallen 6 percent in 2020 on account of the combined effect of strict domestic containment measures and international travel restrictions. The fiscal deficit increased to 7.7 percent of GDP, given the large fall in tax revenues and the implementation of mitigation and recovery measures of 4.2 percent of GDP. The current account deficit is estimated to have increased to 7.5 percent of GDP mainly due to a large decline in diaspora-related inflows, most notably in tourism. Gross international reserves declined but remain adequate in part due to the purchase under the IMF’s Rapid Financing Instrument (RFI) in April 2020 and the use of other external financing. Banks have weathered the recession well to date, and the high pre-COVID19 liquidity levels and ample capital buffers bode well for the system’s stability.
Keywords:
ISCR; CR; targeted cash support; Kosovar authorities; bank asset quality; Kosovo authorities; deficit rule