Head of the International Monetary Fund for Kosovo, Stephanie Eble, appealed to Kosovo authorities not to increase number of pension and non-contributory schemes.
During a press conference held together with the Minister of Finance Bedri Hamza, she said that Kosovo continues to mark sustainable growth due to investments and exports.
“Programs for social benefits should reform … This also means a credible reclassification of war veterans in order to remain within the budget allocations for 2018. We also appeal not to add or increase schemes of non-contributory pensions in order to maintain a sound pension system and the efficiency of spending on education and health should improve.
The 2018 budget increases and the effectiveness of reforms in the health and education sector need to be revised once the health insurance pension scheme is implemented, “said Eble.
The IMF chief has suggested that the minimum wage remains within the foreseen mechanisms.
As far as fiscal policies are concerned, the budget deficit for 2017 is expected to be 1.5 per cent of GDP and according to her the foreseen economic growth is in line with the fiscal rule. Also, the wage cost should be in line with the rule for them.
However, Eble said the composition of the budget could be improved over time.
On the other hand, Finance Minister Bedri Hamza, said they are obliged to comply with the law, while saying that the unemployment rate in Kosovo is high.
“We as institutions are obliged to act in accordance with the legislation in power. For the unemployment rate … it’s high. We have heard different figures. The latest figures, if referred to the Kosovo Agency of Statistics, vary somewhere around 27 percent,” Hamza said.