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|
|- 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|
|- Wages and salaries||173.7||135.3||28.4%|
|- Goods and services||67.3||67.5||-0.3%|
|- Subsidies and transfers||131.8||97.3||35.5%|
|- Capital expenditure||149||174.9||-14.8%|
|- Debt payments||11.5||10.4||10.5%|
|Source: Finance ministry|
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