UNMIK/PR/317
The Interim Administrative Council endorsed regulations today amending the Kosovo Consolidated Budget for 2000 and on licensing requirements for the import, manufacture, sale and distribution of pharmaceutical products. The regulations will be signed by SRSG Bernard Kouchner pending review by the United Nations legal office in New York.
Mr. Alan Pearson, the Acting Deputy Special Representative of the Secretary-General for Reconstruction and Economic Development, outlined modifications needed for the current year's budget to re-allocate resources in order to accommodate emerging pressures on the budget.
"The budget is a highly political matter, so we discussed it for a long time," SRSG Kouchner told media following the meeting. "After consultations with the administrative departments and Central Fiscal Authority, we have decided how to distribute among the different departments the 430 million deutsche mark in the Kosovo Consolidated Budget."
Kosovo is required to operate a balanced budget. Since local revenues have been less than anticipated, the CFA has been faced with a choice of having to cut the budget, raise taxes or seek additional donor support.
While the CFA is reviewing taxes and other charges, more money is being raised by increased activity to improve compliance with the customs regime and to tighten border controls.
Rather than reduce the budget, the CFA has proposed that new expenditure pressures be accommodated within the budget by re-arranging existing budgets, while asking donors to consider further contributions to both the Kosovo Budget and the Kosovo Protection Corps.
The pending regulation seeks to find money for several agencies for which current appropriations were clearly inadequate or where there was no appropriation when the last budget revision took place in April, taking into account the newly created accommodate the Joint Interim Administrative Structure.
One of the major developments affecting the year 2000 budget is the required increase in subsidy to the Kosovo Power Company (KEK), up from DM 22.69 million to DM 37.69 million, an increase of DM 15.0 million, KEK has been unable to increase sufficiently cost recovery through billing, and exports of electricity have fallen short during the summer months.
To compensate for this increased subsidy, the CFA proposes to reduce appropriations to almost every agency--mainly from their goods and services budgets. Overall, the priorities to Health & Social Welfare, Education and Justice have been maintained.
Asked by media about funds for war invalids, Dr. Kouchner said that some money had been found for their assistance, as well as for a veterans rehabilitation center, but that pensions and social welfare were also putting demands on funds for humanitarian assistance and would be discussed at the first IAC meeting in September.
The SRSG also briefed the IAC on yesterday's action by UNMIK and KFOR to take responsibility for the Zvecan lead smelter which had been emitting dangerous amounts of lead into the environment. He noted that of the 20 smelter workers who agreed to blood tests yesterday at the plant, only two had ever been tested previously and both more than seven years ago. He also noted that UNMIK was continuing the payment of compensation to workers today which had begun yesterday. And he expressed his hope that UNMIK could repair the smelter as soon as possible, "as we did with the Stari Trg mine."
Asked to comment on an alleged remark by Mitrovica Serb leader Oliver Ivanovic opposing the return of Kosovo Albanians to northern Mitrovica, Dr. Kouchner reminded media that Ivanovic had often expressed support for a united Mitrovica, but that this would not happen immediately as we need to avoid provocation."
Dr. Kouchner told media he would attend a demonstration against violence organized by the LDK, and would do the same upon an invitation by any party campaigning against violence in Kosovo.