The GAP Institute has published the report titled "Draft Budget 2026 - Analysis of Revenues and Expenditures", assessing that the draft budget approved by the Government of Kosovo on February 12, 2026 does not reflect the new government structure and was not drafted on the basis of the Medium-Term Expenditure Framework (MTEF) for the period 2026–2028.
According to the announcement, "the approved version is the same as the one that the incumbent Government had approved on October 31, 2025 and does not reflect the structure of the new Government, which will now have 19 ministries."
It is also said that the draft budget was not prepared based on the Medium-Term Expenditure Framework (MTEF), which has not been approved and published at all for the period 2026–2028.
"Kosovo's budget for 2026 foresees around 4 billion euros in expenditures, which represents a 10% increase compared to 2025. Current expenditures are expected to increase by 279 million euros (+11%) and reach around 2.9 billion euros, accounting for 73% of the budget, while capital expenditures increase by 67.1 million euros (+7%) and reach 998.4 million euros, or 25% of the budget," the GAP report states.
The GAP Institute estimates that in recent years a disproportion has been created between budget categories.
"During the period 2019-2025, expenditures on subsidies and transfers have almost doubled in value, while capital investments have only increased by about 35%. This development limits the opportunity to invest in infrastructure projects, although public investments have a very high multiplier effect on the economy," the GAP report further emphasizes.
The central level budget, excluding public debt interest payments, will be around 3 billion euros, while the local level budget will be around 867 million euros.
The bulk of the budget increase at the central level goes to the Ministry of Finance, Labor and Transfers, with an increase of around 174 million euros or 17%.
According to the report, "the pension payments category is planned to increase by 95 million euros or 20% in 2026, the maternity and child allowance scheme by 75 million euros or 52%, reaching 220 million euros as a scheme."
As for other sectors, the budget for health is expected to reach around 396 million euros (+10%), while for education around 408.7 million euros (+6%), compared to 2025.
In the justice sector, the increase is around 2%. However, according to GAP, in other sectors, the budget does not differ much from last year, and the budgetary needs for the effective implementation of key strategies for our economy, such as the Energy Strategy, are not addressed.
"For the first time, the draft budget also includes the 13th salary for the public sector. But, according to the report, although the overall increase in the wage bill remains within the allowed fiscal limits, it is not in harmony with the Law on Wages and represents an ad-hoc intervention in wage policy," GAP emphasizes.
The report also highlights weaknesses in the implementation of capital investments. "During the period 2021–2024 alone, the implementation of capital investments has been about 1 billion euros lower than planned, reflecting ongoing weaknesses in the planning and implementation of capital projects," the release states.
According to GAP, the distribution of investments from the central level to municipalities continues to be disproportionate to population and area, although more balanced from a party perspective.
It is also noted that the information document for citizens was not published on time and that the draft budget "continues to fail to address the gender perspective, lacking impact analysis and measures to promote gender equality."
The full report has been made public by the GAP Institute and can be found here. HERE. /Telegraph/
