UNMIK/PR/84
PRISTINA—Today United Nations Special Representative of the Secretary-General Bernard Kouchner approved the Kosovo Consolidated Budget for 1999 and established the Central Fiscal Authority.
The Kosovo Consolidated Budget for 1999 is 125 million DM. Nearly 70 percent of the budget is financed from international donor grants.
The approval of the budget makes possible to use local revenues from customs, excise and sales taxes as well as donor grants, to provide major public services such as health, education, police and fire services, water and assistance to the needy.
The funds in the Kosovo Consolidated Budget will be used to pay local employees providing normal government services. Funds from the budget will not be used to support the United Nations, non-governmental organizations, or other international staff. Financing for services rendered by staff of these groups comes from different UN resources, or other donor sources.
The budget for the year 2000 is currently being developed. The main challenge will be in identifying and prioritizing public expenditures that can be sustained over the long term through the collection of local revenues. It is envisioned that next year’s budget will require at least 40 percent donor assistance. The main task facing the Central Fiscal Authoritywill be in developing a fully self-supporting budget within a few years.
The Central Fiscal Authority (CFA) is the institution responsible for the overall financial management of the Kosovo Budget and the budgets of the municipalities that together form the Kosovo Consolidated Budget. The CFA is intended to remain in Kosovo long after UNMIK ends its civil administration responsibilities.
Dr. Kouchner has appointed Mr. Alan T. Pearson as Head of the Central Fiscal Authority. Mr. Pearson, who will report to Deputy SRSG for Economic Reconstruction and Development, shall be responsible for managing the CFA and ensuring that the functions entrusted to it are implemented. Mr. Pearson has extensive experience in government budget and treasury management. Previously he served as a Senior Executive in the Australian Ministry of Finance where he was responsible for the development and implementation of the government’s budget legislation and financial accounting.
