Annual Report 2010 03 August 2011 - Banka Qendrore e ...

CBK
Annual Report 2010
marking an annual growth of 39.8 percent. The structure of the own source revenues is
composed by the central level and municipal level revenues. In 2010, own source revenues
from the central level amounted at euro 48.5 million, whereas own source revenues from
the municipal level generated euro 52.0 million for the budget of Kosovo. Regarding one-off
revenues, in 2010, the PTK transferred an amount of euro 85 million as a dividend to the
budget of Kosovo, compared to euro 200 million transferred in 2009.
3.2.2. Budget Expenditures
Budget expenditures in 2010 amounted at euro 1.27 billion, recording an annual growth of
3.2 percent, which represents a slower growth rate compared to the growth of the previous
year (29.6 percent). Budget expenditures to GDP ratio in 2010 stood at 30.1 percent, which
represents a lower share compared to the average of the region (35.3 percent of GDP in
2009). In 2010, budget expenditures dedicated for consumption accounted for 11.2 percent
of GDP, whereas capital outlays accounted for 10.8 percent of GDP. 6
Similarly to previous years, capital outlays in 2010 absorbed the largest share of the budget
expenditures, comprising 35.8 percent of total budget expenditures. Capital outlays in 2010
amounted at euro 455.3 million, recording an annual growth rate of 13.7 percent. The
largest part of capital outlays during 2010 was designated for infrastructure investments
(57 percent of total capital outlays), which were mainly related to the construction of the
Morinë-Merdarë highway, whose construction started in April 2010. The second largest
category of budget expenditures in 2010 were wages and salaries, which amounted at euro
311.4 million (24.5 percent of total expenditures). Wages and salaries represent the
category that marked the highest increase within the budget expenditures, recording an
annual growth rate of 17.8 percent. Subsidies and transfers represented the third largest
category, with a share of 19.9 percent in total budget expenditures. Subsidies and transfers
in 2010 reached at euro 252.7 million. This category marked an annual decrease of 1.6
percent. The reduction of this category in 2010 is mainly attributed to the decline of
subsidies for public enterprises from euro 82 million in 2009 to euro 56 million in 2010.
Basic pensions, which comprise the largest share of subsidies and transfers, reached at
euro 95 million in 2010 from euro 86 million in 2009.
Goods and services in 2010 were the category with the smallest share within budget
expenditures, amounting at euro 162.6 million (12.8 percent of total budget expenditures),
which is an annual increase of 7.1 percent. The increase of expenditure for goods and
service is mainly due to the increase of contractual expenses and the expenses for
maintenance and refurbishment. 7
Since year 2009, budget expenditures have started to contain also other financings as a
separate item, which includes loans granted to public enterprises and the servicing of the
foreign debt (7.1 percent of total budget expenditures). In 2010, loans to public enterprises
amounted at euro 60 million, of which the largest part was extended to KEK. In addition,
during 2010, Kosovo serviced foreign debt at the amount of euro 10.1 million. Moreover, the
US Government helped reducing Kosovo’s foreign debt by the amount of euro 9.8 million.
6 Consumption expenditures include wages and salaries, and goods and services, whereas capital outlays refer to the public investments.
7 These expenditures include the expenses for education, training and advocacy services, maintenance of buildings and road infrastructure, etc.
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