The GAP Institute has published a report on the municipal budget for 2026, highlighting increases in spending in all main categories compared to 2025, but also marked inequalities in the distribution of investments from the central level.
According to the report, salaries in municipalities are expected to increase by 48.8 million euros or 13 percent, expenditures for goods and services by 6.78 million euros or 5 percent, utility expenditures by 1.6 million euros or 10 percent, while subsidies and transfers by 6.02 million euros or 17 percent. Capital investments are expected to increase by 16.6 million euros or 7 percent.
GAP emphasizes that the budget of 11 municipalities should be reviewed between two budget readings, as they had not approved the annual budget by September 30, 2025 due to municipal elections and lack of information for assembly members.
As a result, the municipalities of Vushtrri, Suhareka, Viti, Lipjan, Malisheva, Shtime, Junik, Zubin Potok, Gjilan, Prizren and Prishtina risk having the same budget in 2026 as in 2025. The Institute estimates that MPs may amend the draft budget to include these municipalities in the budget increase, according to the budget calculation methodology.
The report evaluates as a positive practice the fact that the Ministry of Finance has not reduced the budget of municipalities that have experienced a decline in population, not penalizing them despite the high needs for local investments.
GAP notes that the Fourth Grant for municipalities has not yet been established, emphasizing that this continues to create disparities in the benefit of investments from the central level. For 2026, ministries plan to invest about 216.6 million euros in municipalities, which constitutes about 29 percent of their investment budget.
Of these, new capital investments amount to 15 million euros, about 32 percent less than in 2025, while only 23 municipalities will benefit from these new funds. Large municipalities such as Pristina, Ferizaj and Fushë Kosova have not received any new investments.
The institute notes that the distribution of investments from the central level is not fully proportional to population and area, highlighting inequalities in allocation. According to the report, municipalities led by the Vetëvendosje Movement benefit from 40.3 percent of total investments and 34 percent of new investments, despite representing 23.8 percent of the population and 18.3 percent of the area.
The Alliance for the Future of Kosovo benefits from 29.5 percent of new investments, despite having 14 percent of the population and 16.8 percent of the area. On the other hand, the Democratic League of Kosovo receives 17.3 percent of total investments and 10.6 percent of new investments, despite representing 30.5 percent of the population and 25.6 percent of the area.
The Democratic Party of Kosovo has a more balanced distribution, while the Serbian List benefits from around 2 percent of investments.
According to GAP, the municipalities with the highest investments from the central level are Gjilan with 30.7 million euros, Ferizaj with 21.4 million euros and Mitrovica with 19 million euros, while the lowest investments were recorded in Gracanica, Obiliq and Zvecan. /Telegrafi/
