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Criteria for Allocation of Grants from the Central Budget for the Municipalities in Kosovo

ince the end of the recent conflict, UNMIK began its work with Kosovo authorities for establishment of the Government institutions (regardless of Kosovo’s final status settlement), there was always a feeling that the responsibility for Public Finance Management is a significant issue and it should bear an important place in the executive branch. Initially, in order to fulfill this function, UNMIK established the Central Fiscal Authority (CFA) and then in 2002, CFA was transformed to the Ministry of Finance and Economy (MFE). Although, Kosovo was still under the jurisdiction of UNMIK until 2008, MEF has completed the activities related to the Ministry of Finance in a national level pursuant to the Constitutional Framework and the Law on Management of Public Finances and Responsibilities (LMPFR). Pursuant to the Constitution of Republic of Kosovo, municipalities have a special chapter and are divided from the Central Government. However they are subject to the LMPFR as well and the Law on Finances of Local Power, and regardless of existences of the capacity for generation and utilization of the property tax and the Self-generated Revenues (including here the charges, the fines for traffic violations) their funding still depends largely on the central government (education grant, health grant and general governance grant). As mentioned, their budgets are executed through the Treasury system which is a same system being used for the central governance Budgetary Organizations.

The purpose of this study is to show that despite the challenges it has gone through and great status changes, Kosovo has marked significant progress in the legal infrastructure in allocation of grants from the Central Government to the Local Government. Kosovo has continuously made an improvement of forms for allocation of grants, adjusting to the circumstances on the ground, despite the fact there were many problems and in lack of accurate data of population census.

  Criteria for Allocation of Grants from the Central Budget for the Municipalities in Kosovo (911.4 KiB, 2,735 hits)

Posted in Economics, Issue no. 5