Kosovo's general budget surplus jumps to EUR 27mn in Jan-May 2013

By bne IntelliNews June 24, 2013

Kosovo's general government budget posted a EUR 8.8mn surplus in May alone, contributing to the strong increase in the five-month surplus to EUR 27mn from only EUR 7.3mn in Jan-May 2012, preliminary finance ministry data showed.

In annual terms, the five-month surplus thus accounted for 0.49% of the full-year GDP forecast compared to 0.14%/GDP a year earlier.

Revenue climbed 12.7% y/y to EUR 570.7 at end-May but this figure includes proceeds from the issuance of government debt, which accounted for 6.9% of total revenue. Excluding this debt the budget would have posted a EUR 12.8mn deficit.

Total tax receipts went up 5.2% y/y to EUR 420.8mn. Proceedings from custom duties, the biggest revenue contributor, rose 3.6% y/y to EUR 291.4mn. In the meantime, proceedings from internal taxes increased 9% y/y to EUR 129.4mn.

In Jan-May, expenditures grew 9% y/y to EUR 543.7mn, mainly driven by a surge in government wages (up 28.4% y/y) and subsidies (up 35.5% y/y). Capital expenses, however, declined 14.8% y/y.

The 2013 budget plan envisages an overall budget deficit of EUR 172mn (including interest payments), or 3.2% of GDP. In 2012, Kosovo's budget posted a EUR 72mn surplus equal to 1.41% of GDP. However, this figure includes debt proceedings, which, if excluded, turn the budget balance into a EUR 95mn deficit instead, equivalent to 1.8%/GDP.

Kosovo's consolidated govt budget, EUR mn Jan-May'13 Jan-May'12 Change, y/y
REVENUE 570.7 506.3 12.7%
- Customs taxes 291.4 281.2 3.6%
- Internal taxes 129.4 118.7 9.0%
- Dividend revenue 30 15 100.0%
- Receipts from the issuance of securities 39.8    
EXPENDITURES 543.7 498.9 9.0%
- Wages and salaries  173.7 135.3 28.4%
- Goods and services 67.3 67.5 -0.3%
- Utilities  10.3 9.8 5.2%
- Subsidies and transfers  131.8 97.3 35.5%
- Capital expenditure  149 174.9 -14.8%
- Debt payments 11.5 10.4 10.5%
BUDGET BALANCE 27.01 7.3 270.0%
Source: Finance ministry      
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