UNMIK/PR/902
PRISTINA – On 31 December 2002, PDSRSG Charles Brayshaw – on behalf of the SRSG – signed into effect the Kosovo Budget 2003 regulation (UNMIK Regulation 2002/23). This ensured that the Budget 2003 could be implemented from 1 January 2003.
The Budget 2003 is based on the revenues forecast of € 516.9 million, some 25% above the revenues in 2002. Reflecting the commitment to a strictly balanced budget the total expenditures are fixed at € 516.9 million, i.e., equivalent to revenue forecast.
Out of the total Budget Expenditures of € 516.9 m nearly 72% (€ 370.2 million) are allocated to transferred powers and therefore are under the management of the Provisional Government and the Municipalities.
Charles Brayshaw noted that, for the first time in 2003, the Provisional Government and the Municipalities had been able to determine the priorities within those amounts themselves, after consulting the respective Assemblies.
Based on € 25 million of forecast General Budgetary Support by Donors, slightly more than 95 % (€ 491.9 m) of the Kosovo Budget 2003 will be financed by taxes and other charges payable in Kosovo.
Mr Brayshaw said that the development of the Budget 2003 had involved a co-operative effort between the staffs of the Ministry of Finance and Economy, the Central Fiscal Authority as well as many transferred and reserved agencies and the municipalities. He thanked all concerned for their efforts.
The Budget 2003 followed the recommendations of the World Bank and the International Monetary Fund, which were given based upon the Medium Term Framework 2003-2005. Both the Medium Term Framework 2003-2005 and the draft Budget 2003 were considered by the Economic and Fiscal Council on several occasions and the EFC had provided advice to the SRSG.