The bill of state budget for 2009, which is projected to be over €1.5 bn, 40% more that in 2008, according to Minister of Economy and Finance of the Republic of Kosovo, Ahmet Shala, will affect the economic development of Kosovo and improve the standard of living of Kosovar citizens.

"This budget includes all our obligations to every citizen of the Republic of Kosovo who is interested to assisst our nation towards development and integration into the European Union and other international organizations."

According to Minister Shala, the International Monetary Fund, which Kosovo expects to join in the beginning of 2009, has given a rather relaxed recommendation regarding fiscal constraints. This was due to persistence of the Kosovar Government explaining that Kosovo has an open but small economy, which according to Shala should not be directly affected by the current global financial crises. However, Kosovo is expected to have 200 million euros as a fiscal stability reserve, while last year it was only 50 million.
 
"The structure of this budget respects exactly the most important priorities of the Government, such as economic growth, building of the Kosovo statehood, decent governing and social stability," said Minister Shala.

Minister Shala emphasized that economic growth must continue. Kosovo can achieve this growth by creating an environment where private sector can expand its economic activities while creating new jobs.

The projected total amount for the public expenses is 1.1 billion, which is 26% of the gross domestic product.

"The budget ensures fiscal stimulus with a projected gross domestic product growth of over 6% during the year of 2009 and this will be the first stage of our economic development,“ said Shala.

According to the budget project, the overall tax collections are expected to be 956 million euros, which is not enough. This is the reason we had the international donors conference this year. Shala explained, "This is due to the new responsibilities the Government of Kosovo has such as municipality finances, new municipalities, new ministries and other responsibilities that are related to the development of Kosovo statehood."

Minister Shala said that the budget of the Republic of Kosovo has been drafted in close cooperation with the International Monetary Fund and various scenarios have been considered.

"Since Kosovo is in the euro zone, our main mechanism is budget and fiscal policies," said Shala.