Mid-year Financial Report

Transcription

1 Republika e Kosoves Republika Kosova RepublicofKosovo Qeveria Vlada Government Ministry of Financave Ministarstvo za Finansija Ministry of Finance Thesari i Kosoves Trezor Kosova - Treasury of Kosovo Mid-year Financial Report Budget of Republic of Kosovo for period 1st of January 30th of June 2016 Adress: Government Building, floor 10, St Mother Theresa Prishtina-Kosovo Telephone/Fax: /

2 Content 1. Introduction Receipts and payments for January-June 2016 compared with previous years Budget execution for period January-June 2016 per months Customs Revenues for January-June Revenues from Tax Administration for January-June Municipality s own source revenues for January-June Expenditures for January June Payments from Donor Designated Grants for January - June Annex 1: Data on transfers from reserve fund Annex 2: Employment data Annex 3: Budget and Payments according to Budget Organisations Annex 4: Expenditures from funds Annex 5: Payments according to Article 39.2 of LPFMA Annex 6: Subsidies for publicly owned enterprises for January-June Annex 7: Expenditures on capital projects for January - June

3 1. Introduction The first half of 2016 was characterised by an accelerated pace of economic growth compared with the same period of 2015, where measures taken in context of reforms of doing business, increasing the confidence of investors as well as continuous and gradual improvement of the external economic environment in general played a special role. Besides the impact of these policies, the positive revenue trends was influenced from the measures taken by revenue collection agencies to narrow down tax gap and enhance efficiency in collection of tax revenues. As a result, total receipts during the first half of the year increased by 17.1% compared with the same period of the previous year. This increase was mainly driven by the regular income tax, while non-tax revenues have been under-collected in particular revenues from dividends. Meanwhile, total payments have increased by 10.0%, with the largest contribution to this increase during this period was provided by the increase of capital expenditures. This increase also affected the increase of spending on subsidies and transfers and expenditures on wages and salaries. However, the relatively satisfactory performance of tax revenues during this period should be followed carefully in the second half of the year, as the trend of growth slowed down in the past two months. Consequently, this positive performance should not be seen as an opportunity for new spending initiatives as there are plenty of obligations from existing policies and ongoing capital investments which will continue in the next two years Revenue Performance The increasing trend of budget revenues continued throughout this period of six months. Budget revenues (which include tax and non-tax revenues) increased by 14.1%, corresponding to 91 million more compared with the first half of the previous year. Revenue increasing pace is greatly influenced by the regular tax revenues, which during this period contributed by 12.9 percentage points. Tax revenues collected by Kosovo Customs have reached a value of EUR million or 17.6% more compared with the same period of the previous year, i.e. 6.1% above the forecast for this period. In the overall budget revenues, these revenues have a share of 64.3%. Tax revenues collected by the Tax Administration of Kosovo reached EUR million or 9.1% compared with the same period of 2015, i.e. 96.1% of the forecast for that period. These revenues represent approximately 24.1% of total budget revenues. This revenue performance was mainly influenced by: a) increase of domestic aggregate demand; b) the full effect of the tax changes in the budget revenues from increased excise for some goods and c) the measures taken by the revenue collecting agencies to prevent and combat tax evasion. 3

4 Non-tax revenues (which include non-tax revenues of the Central Budget and Own Source Revenues within both levels of government) recorded 94.2 million or 7.5% compared with the same period of This increase has been influenced mainly by the non-tax revenues of budget organizations at the central level which increased over 30%, while an increasing trend was noticed in the category of revenues at the local level, but compared with the projections have a under-performance in this category i.e. 65.8% of the forecast for this period, while total non -tax revenues reached 99% of the forecast, influenced mainly by failure to collect revenues planned from dividend. In the overall budget those revenues occupy 12.8%. Regarding the non-budget revenues (receipts from borrowing), they have recorded million, out of which domestic borrowing represents 59.5% of total borrowing during the reporting period. External borrowing during this period mainly relates to the disbursement of the second installment of financial support stemming from meeting the criteria of programme with IMF Expenditure performance Budget expenditures have increased by 10% compared with the first half of previous year. This increase was mainly driven by higher execution of capital expenditures, followed by an increase in the category of expenditures on subsidies and transfers and partly by an increase in the category of wages due to the effect of implementation of the collective contract. Budget expenditures reached EUR million (including interest payments) during the mid-year of 2016, or 6.9% more compared to the expenditures incurred during the same period of the previous year. Compared with the forecast we spent 15.7 million less respectively 97.9% from the forecast for this period. Out of these expenditures, 38.0% are wages and salaries, 29.6% subsidies and transfers, capital expenditures were 18.2%, goods and services12.2%, and 1.4% interest payments on the national debt. o Expenditures for wages and salaries amounted to EUR million of this six months, reaching the rate of execution 99.4% compared with the total amount budgeted for this category covering this period. The salary bill during the reporting period presents an increase of 4.5% or around 11.1 million more compared to the wage bill in the same period of 2015, which comes as a result of implementing the collective contract. o Expenditures for Goods and Services followed the trend of the previous year, recording a slight decrease of 2.7% compared with During this period, the value of these expenditures amounted to 87.7 million euro (including here expenditures plus EUR million of utilities), this amount corresponds to 95.5% of the budget for this category in the period surveyed. The highest contribution to the increase of these expenditures relate to expenses provided for maintenance of the physical means. o Expenditures for Subsidies and Transfers imply social transfers and subsidies, including subsidies in the agricultural sector. These expenditures in total amounted to EUR In this position are recorded revenues from debt service sub-lending, in the amount of EUR 3.1 million euro. These revenues are used to service the sub-lendingdebt, and do not present drawings from sub-lending, so they do not affect the increase of state debt. 4

5 million, an increase of 7.9% compared with This increase is a result of increased contribution pension, increase of 25% of social assistance benefits and early payment benefits for veterans of war. Execution rate for this category of expenditure in relation to the planned budget for this period reached 97.9%. o Capital expenditures were executed at a satisfactory rate. They reached a value of EUR million, which is 96.2% of the plan during this period or around 16.1% more compared with the same period of The highest growth within this category is recorded in expenditures for road construction, with an increase of EUR 25 million (or 42%) compared with expenditures in this category over the same period of o Expenditures for state debt service (interest and principal payments) recorded EUR million, recording an increase of 127.8% compared with the payments for this category over the same period of the previous year. They have contributed to the increase of principal payments related to debt repayment to the IMF for financial support from the program of the second Stand-By Agreement 3. Balance of funds by 30 June 2016 The balance of funds on 30 June 2016 is million. Initial balance of budget funds of the Republic of Kosovo in 2016 was million, as a result of revenues collected more than expenditures for the period January - 30 June We have an increase of funds for EUR million. Detailed disclosures about revenue and expenditure are presented in the following tables of this report. 2 This includes debt service for the sub-lended loans amounting to EUR 3.1 million. 3 The second Stand-By agreement with the IMF was signed in April The amount of the Programme was million XDR (Special Drawing Rights), but from this amount only million XDR were drawn, or million Euro. As for the remaining million XDR a request for withdrawal was not made, and thus is canceled. 5

6 2. Receipts and payments for January-June 2016 compared with previous years Description Difference In milliion of Euros (2016/2015) 1. TOTAL RECEIPTS % 1.1 Budget revenues % Tax revenues % Direct taxes % Corporate Income Tax % Personsl Income Tax % Property tax % Other direct tsaxes % Indirect taxes % Value Added Tax VAT % Customs Duty % Excise % Other indirect taxes % Tax returns (16.85) (15.15) (19.46) 28% Non-tax revenues % Taxes, other charges by BOs of Central Government % Taxes, other charges by BOs of Local Government % Consession fee % Royalties % Revenues from dividends % 1.2 Receipts from financing % Borowing % Internal Borrowing % External Borrowing % PAK dedicated revenues % Receipts from donor designated grants % Receipts from trust deposits % 2. TOTAL PAYMENTS % 2.1 Budget expenditures % Current expenditures % Wages and Salaries % Goods and Services % Utilities % Subsidies and Transfers % Social Transfers % Subsidies (publicly owned enterprises, agriculture, etc.) % Capital Expenditures % Interest expenditures for state debt % 2.2 Payments for financing debt and grants % Return of debt principal % Payments from donor designated grants % Payments from trust deposits % 3. BALANCE OF BUDGET REVENUES AND EXPENDITURES ( ) (28.17) (21.08) % 4. INCREASE/DECREASE OF CASH (1-2) % 5. BALANCE OF FUNDS Balance of Cash ( ) % 5.1 transit account-time difference KFMIS-CBK (1.49) Balance of cash at the begining of the year Balance of cash at the end of the period % 6

7 3. Budget execution for period January-June 2016 per months Budget Total collected Execution January February March April May June Description 2016 / Budget ( KFMIS*) In millions of Euros (%) 1. TOTAL RECEIPTS 1, % 1.1 Budget revenues 1, % Tax revenues 1, % Direct taxes % Corporate Income Tax % Personsl Income Tax % Property tax % Other direct tsaxes % Indirect taxes 1, % Value Added Tax VAT % Customs Duty % Excise % Other indirect taxes % Tax returns % Non-tax revenues % Taxes, other charges by BOs of Central Government % Taxes, other charges by BOs of Local Government % Consession fee % Royalties % Revenues from dividends % One-off revenues from tax debt / % One-off tax revenues from POEs debts % 1.2 Receipts from financing % Borrowing % Internal borrowing / % External borrowing % Receipts from Donor Designated Grants % Receipts from Trust Deposits / n/a 2. TOTAL PAYMENTS 1, % 2.1 Budget expenditures 1, % Current expenditures 1, % Wages and Salaries % Goods and Services % Utilities % Subsidies and Transfers % Social Transfers % Subsidies (publicly owned enterprises, agriculture, etc.) % Capital Expenditures % Interest expenditures for state debt % Reserves % 2.2 Payments for financing % Return of debt principal % Payments from donor designated grants % Payments from trust deposits/ n/a 3. MONTHLY BALANCE OF BUDGET REVENUES AND EXPENDITURES ( ) INCREASE/DECREASE OF CASH (1-2) * the Budget 2016 reflects additional appropriations carried forward own source revenue and use of reserves. / 1 Revenues from the collection of the Debt under Law 05/L0-43 are EUR 7.8 mil., the same are treated as general revenues by TAK, see page 10 of the "revenues from the Tax Administration of Kosovo. / 2 negative values represent the failure of the refinancing plan, to be carried forward as a plan for the remainder of the fiscal year / 3 Change in value of the stock of trust funds is presented as a difference only at the end of the period / 4 Social transfers include pensions and social welfare program, as well divisional as sub- program for employment (compensation for maternity leave) 7

8 4. Customs Revenues for January-June 2016 During the period January-June 2016 revenues collected at the border have increased significantly, reaching a value of EUR million, an increase of EUR 71.0 million, or 17.6% more compared with the same period of previous year. The value of imports of goods also recorded an increase of 6.7%, while the amount of import increased by 6.3%. This proves the fact that during this period, aggregate domestic demand was the main driver in increase of revenues collected at the border during this period. This increase was influenced by the reforms and measures taken by Kosovo Customs for narrowing the tax gap. Revenues and returns by Kosovo Customs for January - June 2016 Types of revenues Difference In millions of Euros (2016/2015) Gross revenues % VAT % Customs duty on import % Border excise % Internal excise % other / % Returns % VAT returns % Other returns / % Net revenues % /1 Other category includes: taxes other customs duties, customs penalties and fines, customs revenues from the sale of goods, banners, external customs control, fast customs. /2 Other returns include: return of excise, customs duty on imports, customs and other duties.. Regarding the structure of border revenues, the largest contribution to positive increase of revenues was given by the revenues collected from VAT, which increased by EUR 38.0 million, followed by revenues collected from excise taxes increased by EUR 27.8 million and a slight increase to EUR 3.7 million in customs duty. It is worth mentioning that the revenue from customs duties started to illustrate the effect of the SAA. While the customs duty has recorded an increase of 15.9% during the first quarter of this year compared with the same period of the previous year, from 1st of April, 2016 when it started implementing the SAA, there is a tendency of slowing down and now remains in level of 6.3% more compared with January-June Despite the fact that the decline in international prices has put pressure on the reduction of the value of imports in Kosovo, the increase in quantity of import growth compensated this effect to large extent. It is worth mentioning the fact that a significant impact on increase of border revenue was given by the improvement in the assessment of imported goods from customs. Increase in the quantity of fuel imports by 12.9% and gasoline by 7.6%, partly attributed to the decline in the prices of this product as well as the intensification of work on the motorway Prishtina-Skopje, it has led to increased revenues from imports of these two products to over 8% compared with the same period of the previous year. 8

9 Although the excise on tobacco increased, during this period it has not lowered the quantity of import of tobacco. Specifically, the import of tobacco increased by 7.5%, increasing revenues from import for this product by 34.6%, compared with the same period of the prior year, reflecting the measures taken by Kosovo Customs in combating tax evasion. In total, revenues from excise tax on import of tobacco, fuel and gasoline account for around 84.4% of total excise revenues. During this period, the number of new vehicles imported increased to 492 vehicles, while the number of old vehicles increased to 3,265 vehicles. This has led to increased revenues from imports in these products by 37.9% in the case of new vehicles, or 49.9% in the case of older vehicles compared with the same period of the previous year. High values of returns from customs compared with previous year is attributable to the new policy for setting excise tax on certain goods, the import of which manufacturers (exporters) are entitled to refund of this tax. During the reporting period, the share of excise tax comprises around 90% of total returns from customs. 9

10 5. Revenues from Tax Administration for January-June 2016 During the period January-June 2016 revenues collected locally recorded EUR million, an increase of EUR 14.8 million, or 9.1% compared with the same period of the previous year, compared with the plan for 2016 an execution is 96.1 %. During the reporting period, the value of collected revenues locally amounted to EUR million and one-off revenues from collecting the tax debt amounted to EUR 7.8 million. Revenues and returns from TAK for period January June 2016 Types of revenues Difference In millions of Euros (2016/2015) Gross revenues % VAT / % Corporate income Tax % Personal Income Tax % Revenues from TAK fines % Other revenues collected by TAK / % Returns % VAT return % Other returns / % Net revenues % /1 Includes the revenues from deferred VAT /2 This category includes: collection of debts from presumptive tax and profit tax, licenses for games, revenues from the sale of waste, transit account, compensation for damages from insurance companies, revenues from the sale of confiscated goods, and tax on rent from intangible property. /3 This category includes returns of taxes other than VAT Value Added Tax recorded a slight increase compared with the same period of previous year by 4.2%. It is estimated that this trend of VAT collection during these six months is temporary, and it is expected that in coming months to have a fluctuation between the collection of VAT on the inside and on the border. This shift in the collection inside is also affected by the new policy after setting forth exemptions from paying VAT when importing equipment and raw materials for certain goods, which on later stage will be reflected as a payment inside with the sale of products or services by the beneficiaries. Corporate Income Tax increased by 23% compared with the previous year, which is estimated to have affected in profit of commercial banks, while there is an increase of 7% tax on personal income (includes tax withholding and tax income from individual businesses). During this period, as a result of activities for implementing the Law 05 / L-043, TAK collected EUR 7.8 million euros, out of which the collection of tax debt is 5.1 million and debts of SOEs to TAK are EUR 2.7 million. 10

11 6. Municipality s own source revenues for January-June 2016 Municipal tax revenues: revenues from property tax, as sole municipal tax revenues this six months recorded an increase of 16% compared with the same period of However, this includes collection of debts based on law debt forgiving. Therefore, it cannot be concluded that that part of the revenue is only from property tax for this year. Property tax collection by municipalities can be seen in the table below. Almost all municipalities have increased property tax collection, with the exception of the following municipalities: Drenas, Graqanica, Prizren, Mamush, Decan and Junik. Municipal non-tax revenues: the non-tax own source revenues of municipalities have increased by 20% compared with the same collection period of This increase is a result of higher collection of municipal fees. Local level revenues (tax and non-tax) Types of revenues Difference In millions of Euros (2016/2015) 1. Tax % Property tax % 2. Non-tax % municipal fees % Permitsd and licenses/ % Fines,penalties,confiscations from inspections % Sales of assets/services and revenues from assets % Other Total of revenues collexted by the Municipalities % /1 includes: Licenses in fuel sector, revenues from natural resources (permits). 11

12 Property tax according to Municipalities Municipalities* Difference In millions of Euros (2016/2015) 1. Drenas % 2. Fushe Kosova % 3. Lipjan % 4. Obiliq % 5. Podujevo % 6. Prishtine % 7. Shtime % 8. Graqanica % 9. Dragash % 10. Prizren % 11. Rahovec % 12. Suhareka % 13. Malisheva % 14. Mamusha % 15. Deqan % 16. Gjakova % 17. Istog % 18. Klina % 19. Peja % 20. Junik % 21. Mitrovica % 22. Skenderaj % 23. Vushtrri % 24. Gjilan % 25. Kaqanik % 26. Kamenica % 27. Novo Berdo % 28. Shterpca % 29. Ferizaj % 30. Viti % 31. Partesh % 32. Hani i Elezit % 33. Kllokot % 34. Ranillug % Total % *Municipalites: Leposavic, Zubin Potok, Zvecan and Mitrovica north did not have any revenues from property tax. 12

13 7. Expenditures for January June 2016 Types of expenditures Difference (2016/2015) 1. current expenditures % 1.1 Wages and Salaries % Salaries % Personal Income Tax % Employee pension contribution % Employer pension contribution % Trade union fees % Allowances Payments for court decisions Goods and Services % Travel expenses % Telecommunication expenses (mobile, internet, post) % Fuel, combustibles % Expenses for services % Maintenance (premises, roads, vehicles, etc.) % rent (for public premises) % Purchase of furnitures and equipmenr less than Eur % Other purchases for Goods and Services % Advance accounts % Rent tax % Debt servicing Expenditures for court decisions and Article 39.2 LPFMA % 1.3 Utilities % Elerctricity % Water % Waste % Central Heating % Phone expenses (d linrlan) % Expenditures for court decisions and Article 39.2 LPFMA % 1.4 Subsidies and Transfers % Social Transfers % Pensions % Basic pensions % Basic contribution pensions / % Pensions for persons with disabilities % Pensions for blind persons % Temporary trepca pensions % KFS pensions % KPC pensions % Payments for war categories % Payments for war veterans Payments for political prisoners % Social assistance / % Maternity leave / % Social payment for individual beneficiary (one-off) / % Subsidies for public entities (employment training) / % Payment court decisions % Subsidies % Subsidies for publicly owned Enterprises % Subsidies for RTK % Subsidies for Agriculture % Other / % 2. Capital expenditures % Construction of roads % land, expropriation % Buildings (Schools, hospitals, other public premises) % Equipment (with value higher than Eur. 1000) % Vehicles for transport and public safety / % Capital transfers for public and non-public entities % Other capital investments / % Payments for court decisions % 3. Total budget expenditures (1+2) % / 1 For the purposes of reporting, pension contributors are divided as a separate category since Therefore, the reduction in this category reflects only the accounting changes from previous years, when this payment included basic pension contribution category. / 2 In 2015 social assistance are smaller as in the database MSLW is identified that some of these beneficiaries of this category benefit funds from other sources. / 3 For the purposes of reporting, the maternal leaves are divided as a separate category in In previous years this payment was made as individual payments to beneficiaries. / 4 Payments of individual beneficiaries in 2015 were smaller as a result of paying for children with disabilities from pensions code for persons with disabilities. / 5 Subsidies for public entities were smaller as a result of amendment to the new regulation for granting subsidies.. 6/ Includes subsidies for sport and culture, treatment of patients abroad, Payments to political parties, Payments to individual beneficiaries, Payments for the provision of social transfers, court decisions etc. /7 mainly include costs of Ministry of Internal Affairs and Municipality Level (Prishtina, Glogovc, Prizren, Klina and Hani i Elezit). /8 This line includes investments in: machinery, intangible assets, biological assets, electricity generation and transmission, ongoing investments from previous years, and support services for execution of investments. 13

14 8. Payments from Donor Designated Grants for January - June Annual Payments from Donor Designated difference Grants In milion of Euro (2016/2015) Wages and Salaries % Goods and Services % Utilities % Subsidies and Transfers % Capital expenditures % Total % Annex 1: Data on transfers from reserve fund Code Budget Organisation Data on transfers from reserve fund Economic category Purpose of using funds Budget allocation Initial balance 5,000,00 0 allocation Residue 207/803 Min.Culture/Youth and Sports 200 Government decision no.10/72 70, /107 Office of the Prime Minister 200 Government decision no.09/72 70, /272 Ministry of Economic Development 130 Government decision no.02/69 139, /272 Ministry of Economic Development 130 Government decision no.01/69 16, Kosovo judicial Council 111 Government decision no.06/70 279, Ministry of Finance Treasury 200 Government decision no.24/74 9, Assembly of kosovo 130 Government decision no.03/73 15, Office of the Prime Minister 130 Government decision no.11/76 50, Assembly of kosovo 300 Government decision no.07/78 200, Min.Culture/Youth and Sports 200 Government decision no.10/81 250, Ministry of Justice 130 Government decision no 12/82 23,750 Municipalities: 625,624,623 Malisheva,Suharek,Rahovec,,613,622,63 Lipjan,Prizren,Gjakove,Shtime 2,617,643,6,Skenderaj,Kllokot,Mitorvice 60,642,&611 and Gllogoc. 200 Government decision no.06/83 159, MoF Treasury 200 Government decision no.08/86 20, Office of the Prime Minister 130 Government decision no.06/85 25, Office of the President 130 Government decision no.08/87 15, Office of the Prime Minister 130 Government decision no.03/87 34, State Prosecutor 130 Government decision no.05/88 207, Ministry of Economic Development 200 Government decision no.10/88 300, Ministry of Diaspora 130 Government decision no.07/94 200, Ministry of Trade 130 Government decision no.13/91 190, MoF Treasury 200 Government decision no.14/91 7, MoF Treasury 200 Government decision no.05/70 10, University Clinic and Hospital Service 111 Government decision no.04/88 82,200 Total 5,000,00 0 2,375,789 2,624,211 14

15 Annex 2: Employment data Central level Code Description Law no.05/l Assembly Office of the President Office of the Prime Minister Ministry of Finance 1,802 1, Ministry of Public Administration Ministry of Agriculture, Forestry and Rural Development Ministry of Trade and Industry Ministry of Infrastructure Ministry of Health /1 1,105 1, Ministry of Culture Youth and Sports Ministry of Education Science and Technology /2 2,065 2, Ministry of Labour and Social Welfare Ministry of Environment and Physical Planning Ministry of Communities and Returns Ministry of Local Government Administration Ministry of Economic Development Ministry of Internal Affairs 10,364 10, Ministry of Justice 1,947 1, Ministry of Foreign Affairs Ministry of Kosovo Security Force 3,324 3, Ministry for European Integration Ministry of Diaspora Hospital and University Clinical Service of Kosovo 6,720 6, Public Procurement Regulatory Commission Academy of Sciences and Arts Telecommunications Regulatory Authority Anti-Corruption Agency Energy Regulatory Office Privatization Agency of Kosovo Procurement Review Body Free Legal Aid Agency University of Prishtina 2,081 1, Kosovo Constitutional Court Kosovo Competition Commission Kosovo Intelligence Agency Kosovo Council for Cultural Inheritance The Election Complaints and Appeals The Independent Oversight Board for Civil Service of Kosovo State Prosecutor State Agency for Data Protection personl Agency for Management of Memorial Complex in Kosovo Agency for Air Navigation Service Office of the Auditor General / Water and Waste Regulatory Office Railways Regulatory Office Civil Aviation Authority The Independent Commission for Mines and Minerals Independent Media Commission / Central Election Commission Ombudsman Institution Kosovo Judicial Institute Kosovo Judicial Council 2,159 1, Kosovo Property Agency Central Level 38,941 36,763 Note: In the column of the planned employees by Budget Law former MP of the Assembly of Kosovo are not included who receive salary, but in the current column of the employees are included the following categories. 1 / MoH has paid salaries for specialists from category of Subsidies: 2 / MEST - the situation presented by as follows: according to data from Salary Division where employees are presented by number and not by working hours since they use internal regulations of the University. 3 / OAG hires additional staff in cases where an employee goes on maternity leave; 4 / IMC - board members of the are included 15

16 Local level Code Description Law no.05/l Gllogovc 1,312 1, Fushe Kosova Lipjan 1,510 1, Obiliq Podujeva 1,976 1, Prishtina 4,725 4, Shtime Graçanica Dragash Prizren 3,101 3, Rahovec 1,160 1, Suhareka 1,309 1, Malisheva 1,287 1, Mamusha Deqan Gjakova 2,258 2, Istog Klina Peja 2,225 2, Junik Leposaviq Mitrovica 1,969 1, Skenderaj 1,370 1, Vushtrri 1,584 1, Zubin Potok Zveqan Mitrovica North Administrative Office Gjilan 2,448 2, Kaqanik Kamenice 1,172 1, Novoberd Shterpc Ferizaj 2,387 2, Viti 1,151 1, Partesh Hani i Elezit Kllokot Ranillug Local level 43,832 40,652 Total 82,773 77,415 16

17 Annex 3: Budget and Payments according to Budget Organisations Total for central and local level Central level Description Law on Budget Nr 05/L-071 Budget in KFMIS Payments Commit/Oblig Progress vs AB,% =4/3 Wages and Salaries 299,799, ,408, ,990,653-49% Goods and Services 145,723, ,039,020 58,918,349 18,328,992 40% Utilities 15,469,258 15,496,282 7,928,676 77,679 51% Subsidies and Transfers 444,370, ,761, ,821, ,208 47% Capital Expenditures 346,137, ,954, ,463,327 75,948,122 30% Reserves 5,000,000 2,624, % Total 1,256,498,867 1,256,284, ,122,046 94,803,001 42% Note: Total of payment does not include Donor Designated grants and trust funds. Local level Description Law on Budget no. 05/L-071 Budget in KFMIS Payments Commit/Oblig Progress vs AB,% =4/3 Wages and Salaries 248,432, ,583, ,430,898-50% Goods and Services 38,222,300 39,686,120 16,198,168 2,567,086 41% Utilities 9,797,595 10,032,571 4,651,890 52,413 46% Subsidies and Transfers 8,667,743 9,515,515 4,081, ,435 43% Capital Expenditures 117,090, ,060,115 31,773,965 24,020,918 24% Total 422,210, ,878, ,136,438 27,111,852 41% Note: Total of payment does not include Donor Designated grants and trust funds. 17

18 Central level (as per Budget Organisations) Description Law on Budget no.05/l Budget in KFMIS Payments Commit/Oblig Progress vs AB, % =4/3 Wages and Salaries 6,288,756 6,288,756 2,767,789-44% Goods and Services 1,688,759 1,703, , ,739 42% Utilities 241, ,000 95,276-40% Subsidies and Transfers 60,000 60,000 59,320-99% Capital expenditures 896,000 1,096, , ,492 26% Assembly 9,174,515 9,389,515 3,919, ,231 42% Wages and Salaries 772, , ,159-50% Goods and Services 770, , ,169 65,739 58% Utilities 18,700 18,700 4, % Subsidies and Transfers 70,000 70,000 21,567-31% Office of the President 1,631,433 1,647, ,975 65,798 53% Wages and Salaries 4,316,179 4,316,179 2,122,505-49% Goods and Services 3,159,627 3,415,097 1,169, ,708 34% Utilities 184, ,133 65,141 2,253 35% Subsidies and Transfers 1,480,000 1,550, , ,806 53% Capital expenditures 2,661,694 2,661, ,493 1,301,109 24% Office of the Prime Minister 11,801,633 12,127,103 4,813,837 1,840,875 40% Wages and Salaries 15,032,524 15,032,524 7,241,840-48% Goods and Services 5,151,366 5,151,366 2,158, ,177 42% Utilities 488, , ,949 3,042 33% Subsidies and Transfers 20,000 67,525 50,897-75% Capital expenditures 8,291,500 5,908, , ,011 4% Ministry of Finance 28,983,982 26,648,957 9,858, ,231 37% Wages and Salaries 2,142,549 2,142,549 1,008,249-47% Goods and Services 4,573,852 4,573,852 1,359, ,146 30% Utilities 1,599,600 1,599,600 1,101, % Subsidies and Transfers 50,000 50,000-15,800 0% Capital expenditures 7,664,721 7,664,721 2,264,588 1,731,545 30% Ministry of Public Administration 16,030,722 16,030,722 5,734,346 1,875,492 36% Wages and Salaries 2,069,235 2,105,775 1,082,669-51% Goods and Services 2,981,681 3,428,681 1,562, ,574 46% Utilities 118, ,768 49, % Subsidies and Transfers 47,383,922 46,982,829 5,026,533 2,088 11% Capital expenditures 4,682,668 4,682, , ,854 7% Ministry of Agric. Forest. and Rural devel. 57,236,274 57,318,721 8,056,044 1,082,679 14% Wages and Salaries 1,493,233 1,493, ,019-47% Goods and Services 1,744,765 1,934, , ,738 37% Utilities 109, ,280 27,922 11,108 26% Subsidies and Transfers 1,050,000 1,050,000 70,527 26,450 7% Capital expenditures 700, ,000 46, ,446 7% Min.of Trade & Industry 5,097,278 5,287,278 1,560, ,742 30% Wages and Salaries 1,808,393 1,808, ,093-46% Goods and Services 5,903,323 5,903,323 4,812, ,210 82% Utilities 375, ,190 90,919 4,587 24% Subsidies and Transfers 1,443,814 1,443, , % Capital expenditures 173,425, ,425,832 63,626,659 25,358,360 37% Ministry of Infrastructure 182,956, ,956,552 69,818,733 25,866,166 38% Wages and Salaries 8,722,755 8,781,906 3,943,324-45% Goods and Services 26,475,872 26,475,872 11,499,135 3,200,666 43% Utilities 230, ,548 95,229 1,417 41% Subsidies and Transfers 7,503,725 7,503,725 4,019,598 21,900 54% Capital expenditures 12,472,000 12,472, ,509 3,971,058 5% Ministry of Health 55,404,900 55,464,051 20,125,795 7,195,040 36% Wages and Salaries 3,525,364 3,536,986 1,731,326-49% Goods and Services 725, , ,361 60,631 56% Utilities 294, , , % Subsidies and Transfers 6,206,550 6,526,550 3,279,028 46,117 50% Capital expenditures 9,125,000 9,125,000 1,744,016 3,650,984 19% Min.of Cult&Youth and Sports 19,876,704 20,228,961 7,355,723 3,758,264 36%

19 Description Law on Budget no.05/l-071 Budget in KFMIS Payments Commit/Oblig Progress vs BV, % =4/3 Wages and Salaries 14,939,774 14,974,950 8,141,645-54% Goods and Services 9,057,453 9,508,025 2,927, ,362 31% Utilities 1,245,259 1,272, , % Subsidies and Transfers 3,821,929 3,821, , % Capital expenditures 16,481,000 16,481,000 6,385,813 4,431,208 39% Min.of Educa Scien. and Techn. 45,545,415 46,058,187 18,445,286 4,982,272 40% Wages and Salaries 4,951,084 4,951,084 2,448,926-49% Goods and Services 1,872,538 1,872, , ,889 43% Utilities 357, , ,381 2,800 52% Subsidies and Transfers 351,311, ,311, ,640,484 57,240 50% Capital expenditures 1,030,000 1,030, ,000 0% Min.of Lab.Soc. welfare 359,522, ,522, ,075, ,928 50% Wages and Salaries 2,138,187 2,138,187 1,004,446-47% Goods and Services 1,118,081 1,118, , ,005 40% Utilities 83,220 83,220 21,745 9,644 26% Subsidies and Transfers 190, , % Capital expenditures 35,644,240 35,644,240 15,772,283 4,436,403 44% Min.of Env.& Spatial Planning 39,173,728 39,173,728 17,246,377 4,645,051 44% Wages and Salaries 735, , ,040-51% Goods and Services 375, , ,274 22,813 40% Utilities 26,154 26,154 11,120-43% Subsidies and Transfers 300, , ,390 5,532 42% Capital expenditures 6,200,000 6,200,000 1,304,975 1,051,564 21% Minis.for Communities and Return 7,637,008 7,637,008 1,966,798 1,079,909 26% Wages and Salaries 976, , ,264-47% Goods and Services 254, ,431 95,799 83,877 38% Utilities 25,500 25,500 5,002-20% Subsidies and Transfers 203, ,649 98,161 42,069 48% Capital expenditures 3,500,000 3,500,000 27,142 3,109,065 1% Min.of Local.Gov.Admin 4,960,035 4,960, ,367 3,235,011 14% Wages and Salaries 1,081,345 1,081, ,586-49% Goods and Services 3,763,669 3,919,040 1,010, ,011 26% Utilities 46,210 46,210 9,177 1,564 20% Subsidies and Transfers 9,433,870 9,733,870 8,768,252-90% Capital expenditures 17,160,000 17,160,000 1,451, ,450 8% Ministry of Economic Development 31,485,094 31,940,465 11,774, ,025 37% Wages and Salaries 72,971,198 72,971,198 37,277,405-51% Goods and Services 18,161,845 18,161,845 5,699,838 5,155,285 31% Utilities 1,886,500 1,886,500 1,070,426 10,052 57% Subsidies and Transfers 2,071,867 2,114, ,346 40,851 39% Capital expenditures 14,031,843 14,031,843 2,921,867 7,784,701 21% Min.of Internal Affairs 109,123, ,165,582 47,796,881 12,990,890 44% Wages and Salaries 12,327,358 12,338,473 6,118,013-50% Goods and Services 4,657,349 4,671,199 2,325, ,535 50% Utilities 922, , ,830 5,352 66% Subsidies and Transfers - 9,900 9, % Capital expenditures 1,067,500 1,067, , ,067 16% Ministry of Justice 18,974,376 19,009,241 9,231,975 1,329,953 49% Wages and Salaries 5,261,267 5,261,267 2,752,849-52% Goods and Services 12,403,547 12,403,547 3,788,828 1,608,481 31% Utilities 538, , ,280-21% Subsidies and Transfers 100, ,000 38,400-38% Capital expenditures 756, ,564 5, ,608 1% Ministry of Foreign Affairs 19,059,429 19,059,429 6,697,114 1,767,089 35% Wages and Salaries 21,803,188 21,803,188 10,397,726-48% Goods and Services 8,963,805 8,963,805 3,713, ,339 41% Utilities 803, , ,202 1,267 59% Capital expenditures 17,680,000 17,680,000 1,656,114 10,105,504 9% Min.Kosovo Sec. Forces 49,250,008 49,250,008 16,243,650 10,751,111 33% 19

20 Description Law on Budget Nr.05/L Budget in KFMIS Payments Commit/Oblig Progress vs AB, % =4/3 Wages and Salaries 697, , ,316-45% Goods and Services 970, , ,311 49,452 40% Utilities 10,500 10,500 2,891-28% Subsidies and Transfers 50,000 50,000 11,000-22% Minist.of European Integration 1,728,534 1,728, ,517 49,452 41% Wages and Salaries 458, , ,753-52% Goods and Services 992,314 1,192, , ,741 38% Utilities 25,500 25,500 5, % Subsidies and Transfers 130, , ,700-99% Ministry of Diaspora 1,606,803 1,806, , ,738 46% Wages and Salaries 51,670,328 51,976,152 25,701,117-49% Goods and Services 10,675,909 10,675,909 5,206, ,473 49% Utilities 3,591,416 3,591,416 1,909,305 5,604 53% Capital expenditures 4,303,000 4,303, ,580 2,381,248 18% Cli.Univ Hospital service 70,240,653 70,546,477 33,590,204 3,015,325 48% Wages and Salaries 231, , ,578-49% Goods and Services 414, , ,118 56,532 38% Utilities 8,200 8,200 1,027-13% Pub. Proc. Regulatory Commission 653, , ,723 56,532 41% Wages and Salaries 754, , ,310-46% Goods and Services 324, , ,321 85,493 51% Utilities 5,000 5,000 1,233-25% Arts and Science Academy 1,084,851 1,084, ,864 85,493 48% Rezervat 5,000,000 2,624, % Unforeseen expenditures 5,000,000 2,624, % Wages and Salaries 424, , ,889-45% Goods and Services 287, , ,757 48,781 45% Utilities 12,700 12,700 4, % Capital expenditures 110, ,000-99,212 0% Reg. Author.Elect.Post. C ommunication 834, , , ,597 39% Wages and Salaries 354, , ,955-50% Goods and Services 138, ,908 33,819 6,326 24% Utilities 8,500 8,500 1,326-16% Anti Corruption Agency 501, , ,100 6,326 42% Wages and Salaries 476, , ,432-46% Goods and Services 199, ,332 89,879 16,401 45% Utilities 22,000 22,000 11, % Capital expenditures 46,000 46,000 11,700 34,300 25% Energy Regulatory Office 743, , ,226 51,387 44% Wages and Salaries 4,402,884 4,402,884 2,190,953-50% Goods and Services 3,944,284 3,944, , ,984 19% Utilities 98,000 98,000 42,225-43% Subsidies and Transfers 490, ,000 53,624 1,620 11% Capital expenditures 30,000 30,000 3,148 5,500 10% Kosovo Privatisation Agency 8,965,168 8,965,168 3,045, ,104 34% Wages and Salaries 210, ,428 93,992-45% Goods and Services 114, ,355 54,642 10,261 48% Utilities 5,100 5,100 1,051-21% Procurement Review Body 329, , ,684 10,261 45% Wages and Salaries 167, ,716 78,700-47% Goods and Services 118, ,192 62,639 2,921 53% Utilities 14,917 14,917 3, % Agency for Free Legal Aid 300, , ,676 3,026 48% Wages and Salaries 20,896,952 21,460,703 11,302,249-53% Goods and Services 2,638,845 2,683, , ,166 28% Utilities 1,004,793 1,004, ,821 1,169 62% Subsidies and Transfers 1,299,000 1,302, ,043 25,200 71% Capital expenditures 2,708,462 2,708, ,582 1,262,315 26% Prishtina University 28,548,052 29,159,661 14,275,897 1,966,850 49%

21 Description Law on Budget Nr.05/L-071 Budget in KFMIS Payments Commit/Oblig Progress vs AB, % =4/3 Wages and Salaries 1,022,548 1,022, ,382-47% Goods and Services 489, , ,195 24,180 57% Utilities 4,000 4,000 1, % Capital expenditures 25,000 25,000-25,000 0% Constitutional Court of Kosovo 1,541,513 1,541, ,803 49,953 49% Wages and Salaries 160, ,104 50,020-31% Goods and Services 59,861 59,861 6,727 7,343 11% Utilities 4,845 4, % Kosovo Competition Authority 224, ,810 57,018 7,343 25% Wages and Salaries 3,400,000 3,400,000 1,690,432-50% Goods and Services 1,320,282 1,320, , ,380 35% Utilities 38,000 38,000 10,408-27% Subsidies and Transfers 450, ,000 15,306-3% Capital expenditures 1,500,000 1,500, ,622 28,287 18% Kosovo Intelligence Agency 6,708,282 6,708,282 2,445, ,668 36% Wages and Salaries 108, ,624 45,383-42% Goods and Services 85,418 85,418 33,826 1,910 40% Utilities 2,550 2,550 1,306-51% Kosovo Counc. For Cult. Heritage 196, ,592 80,516 1,910 41% Wages and Salaries 130, ,727 60,744-46% Goods and Services 73,613 73,613 21,801 5,845 30% Utilities 7,820 7, % Election Comp. Appeal Panel 212, ,160 82,824 5,845 39% Subsidies and Transfers 4,800,000 4,800,000 4,800, % Radio Television of Kosovo 4,800,000 4,800,000 4,800, % Wages and Salaries 236, , ,128-48% Goods and Services 52,402 52,402 34,009 2,438 65% Utilities 3,825 3, % Ind. Overs.Board KCS 292, , ,995 2,438 51% Wages and Salaries 6,403,437 6,643,467 2,780,591-42% Goods and Services 1,340,552 1,547, , ,247 49% Utilities 199, ,630 55,540 1,505 28% Capital expenditures 70,000 70,000-70,000 0% State Prosecutor 8,013,619 8,460,908 3,601, ,752 43% Wages and Salaries 217, , ,930-50% Goods and Services 130, ,448 45,330 7,536 35% Utilities 6,450 6,450 1,633-25% State Agen. Prot. Of Data 354, , ,894 7,536 44% Wages and Salaries 81,012 81,012 40,625-50% Goods and Services 44,535 44,535 13, % Utilities 9,250 9,250 6,022-65% Capital expenditures 2,000,000 2,000, ,401 88,186 28% Agency for Manag. of Mem. Complex 2,134,797 2,134, ,351 88,686 29% Wages and Salaries 2,040,973 2,040,973 1,095,982-54% Goods and Services 522, ,527 80,993 29,344 16% Utilities 46,500 46,500 21,851-47% Capital expenditures 200, , % Agency for Air Navigation Services 2,810,000 2,810,000 1,198,826 29,344 43% Wages and Salaries 1,673,604 1,673, ,135-50% Goods and Services 551, , ,590 28,632 31% Utilities 34,000 34,000 12, % Capital expenditures 50,000 50,000 12,981-26% Office of the Auditor General 2,308,893 2,308,893 1,035,050 28,632 45% Wages and Salaries 217, ,736 89,796-41% Goods and Services 134, ,495 50,017 22,309 37% Utilities 6,503 6,503 2, % Water and Waste Regulatory Office 358, , ,844 22,633 40% 21