News & Events

08 January 2015

Kosovo parliament approves 2015 budget

The parliament of Kosovo approved the 2015 budget of 1.68 billion Euro, without the 25 percent wage increase promised by previous government.

Sixty-nine of the 92 assembly members attending voted for the budget, while 20 voted against and three abstained.

The International Monetary Fund (IMF) in December praised Kosovo's new Prime

Minister, Isa Mustafa, for defying a strike threat by trade unions and sticking to plans for steep public sector pay hikes.

Mustafa, who took power five weeks ago, has vetoed a pledge by his predecessor, Hashim Thaçi, to raise public sector salaries by 25 percent annually for the next four years, following a similar raise last year.

Prime Minister Isa Mustafa told parliament his government expected a growth rate of more than four percent in 2015, unchanged from estimates for 2014, and inflation of one percent, up from 0.4 percent this year.

Mustafa said improving the current structure of the economy needed to focus on boosting investment and therefore increasing domestic production and exports to reduce its high trade deficit.

The budget was adopted without Serb representatives who left the session dissatisfied with the amount of funds allocated for the majority Serb municipalities.


Source: dtt-net/AFP

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