Prishtina, 30 October, 2024
Dear citizens,
Dear colleagues from the Government of the Republic of Kosovo,
Dear Media,
In today’s meeting, as an item on the agenda, we also have the approval of the law for the fourth budget in this term, to mark the historical record as the first government which takes the mandate to the end, and approves four annual budgets.
The performance and growth of the budget during these four years has been like never before. Year after year, we have had a double-digit increase in budget revenues, without changing any fiscal policy, which has made it possible to increase the budget without increasing the public debt and without causing a financial burden for future generations.
For the year 2025, the projected budget marks the level of 3.608 billion euros, which is about 300 million euros or expressed as a percentage for 8.87% higher than that of 2024.
From this budget, 916.5 million euros will go to public sector salaries, including the salary increase that we presented at yesterday’s conference where from January salaries will increase by 55 euros for all employees in the public sector, while from July the salary increase it becomes 110 euros for each.
This brings the average salary in the public sector for 2025 to 870 euros per month gross.
Compared to the pre-pandemic year 2019, when the budget for salaries was 616.9 million euros, in 2025 we have an increase of 300 million euros just for salaries, or translated into a percentage, we are dealing with an increase of 48.5%.
The Gross Domestic Product, meanwhile, from 2019 to 2024 is projected to grow by 46.2%.
Wages 48.5%. Gross Domestic Product 46.2%.
As we have said, the salary increase in our government is related to the economic growth – as the economy and productivity increase, the salaries will also increase. This also gives security and predictability to public servants, because with us they know exactly that there will be an increase in wages every year and as much as the economy grows, as we have already proven, but at the same time this method also means fiscal stability in the long term because the sector thus, the public does not become a burden that collapses the rest of the economy. So predictability and planning, and sustainability in the long term.
In the Goods and Services category, we have planned to allocate 105 million euros for health needs, in the Ministry of Health and in ShSKUK, so that essential drugs and related consumables are provided. Meanwhile, we have planned another 87 million euros for security and defense needs, which will go to ammunition, equipment and necessary supplies so that our police and army can perform their duties with full efficiency.
For our pensioners, we have budgeted an additional 100 million euros to cover the 20% increase in pensions that we have already approved. While another 60 million euros have been added to the children’s allowance scheme, to cover the increase in allowances that we made 2 months ago for the 3rd anniversary of the scheme’s launch.
We are continuing the increased support for the cultural scene and sports, always relying on the excellent results that come to us every day from the artists and sportsmen who represent us worthily.
Meanwhile, our farmer will continue to be the most supported in the region with subsidies and grants.
Now that we have resolved most of the deadlocks of old contracts and projects that were not properly planned, the dynamics of investment execution has marked an acceleration of the pace, and we are following this with an increase in the budget. For capital investments in infrastructure, we have allocated 930 million euros, which will go to the rehabilitation and construction of railways and the construction of regional roads and highways – the Prizren-Tetovo road, the railway that connects us to the port of Durrës, but also the connection of airport with railway and train line, are just some of the projects. Investments are also foreseen in the provision of water supply, such as the FLOWS project that provides drinking water for the Anamorava area, the drinking water plant that will be built in Ferizaj, or even the sewage treatment plant in Podujevë.
We will continue the investments in the northern part of the country, ensuring full integration with infrastructure, now that the extent of control there and the issue of security are completed topics.
Infrastructural investments in sports will also have a special focus, as the deadline for the 2030 Mediterranean Games is approaching. We have budgeted over 200 million euros in capital investments in just the next three years, which will go towards the construction of sports infrastructure in the municipalities that will host these games.
We have also increased the defense budget. While in the previous two years, we reached the level of 2% of the Gross Domestic Product only after new allocations during the year, with government decisions, for the year 2025, from the beginning the defense budget will mark the level of 2% of the Gross Product Domestic, with the level of 208 million euros. This means that with the additional allocations during the year, this will exceed this 2% of the Gross Domestic Product, which is also the NATO standard from its summit a decade ago in Wells, Great Britain.
The budget also contains the reforms that we started together with our partners. The digital governance project has begun to take shape and very soon we will see the first results in facilitating the lives of citizens through the digitization of services. The project for the health information system is awaiting ratification in the Assembly, as is the one for early childhood education. On the other hand, the reform of social schemes has already started piloting, where families are no longer subject to discriminatory criteria, but on the contrary, they are supported to integrate and become active in the labor market. However, the reform of the pension schemes will soon be completed.
There was also an increase in the budget for the municipalities. With a total of 788 million euros, the municipalities will have over 240 million euros more support than they had before we took the mandate. In addition, there will be additional support for municipalities through performance grants or projects that are co-financed by line ministries.
Dear citizens,
As you can see, this budget is for everyone, as is our government.
This will be the fourth budget for this mandate, but the first for the upcoming mandate. Therefore, you can be sure that our ministers have also taken care to design the budgets of their ministries as for themselves.
Meanwhile, because the elections are already approaching, we are also hearing many empty opposition promises, as a counter value to good government decisions. However, we must be sure of one thing, that comedy shows and responsible governance should not be confused.
And now I am passing the floor to the Minister of Finance, Labor and Transfers, Mr. Hekuran Murati.
Last modified: October 31, 2024