Fiscal policies of EU in Kosovo and their harmonization with the EU countries

Abstract

The aim of this paper is to present the main challenges of fiscal policies in 
Kosovo. Furthermore, we have presented some legal procedural alternatives 
to to eliminate deficiencies of fiscal policies in Kosovo. One of the main 
challenges of fiscal policies in Kosovo that also other countries are are facing 
with in different periods is the harmonization of national legislation with EU 
legislation regarding the fiscal policies. Principally there are some similarities 
of the legislation regarding fiscal policies with EU, but the dissatisfaction 
arises because the application of these dispositions is not done in 
professional way and often the distribution of the state budget is done in 
regions and municipalities that bring less revenues than the budget they 
receive and this disbalanced fiscal policy have negatively influenced in the 
financial and fiscal stability of the country. The Republic of Kosova 
principally is an unitary state and the fiscal revenues are concentrated in the 
budget of the state, but there is no an equitable distribution in the regions 
or municipalities that have contributed in attracting taxes and levies. The 
government gives more budget to the favorite municipalities and this is not 
a violation of the law but is a violation of principles of democracy because 
who pay more taxes also should receive more revenues.