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Quarterly Financial Report Republika e Kosovës Republika Kosova – Republic of Kosovo Qeveria – Vlada – Government Ministria e Financave, Punës dhe Transfereve - Ministarstvo Finansije, Rada i Transfera – Ministry of Finance, Labour and Transfers Thesari i Kosovës – Trezor Kosova - Treasury of Kosova ______________________________________________________________________________ Quarterly Financial Report Budget of the Republic of Kosovo For the period 1 January – 31 March 2021 Address: Government Building, 10th floor, Str.”Nëna Terezë”- 10000 Prishtina-Kosovo Telephone/Fax: +383 38 200 34 026/+383 38 212 362 www.rks-gov.net Contents 1. Introduction .......................................................................................................................... 3 1.1. REVENUE PERFORMANCE …………………………………………………………………………………………………………3 1.2. EXPENDITURE PERFORMANCE…………………………………………………………………………………………………..4 1.3. BALANCE OF FUNDS ON 31 MARCH 2021…………………………………………………………………………………..5 2. Receipts and payments for the period January – March 2021 and comparisons with the previous years ........................................................................................................................... 6 2.1 Budget execution for the period January-March 2021 by months ..................................... 7 3. Revenues collected by Customs ........................................................................................... 9 Revenues and returns from Kosovo Customs for the period January – March 2021 ............... 9 4. Revenues from Tax Administration of Kosovo .................................................................... 10 5. Municipalities’ own source revenues ................................................................................. 11 Property tax by municipalities ................................................................................................. 12 6. Budget expenditures ........................................................................................................... 13 6.1 Payments from donor designated grants ........................................................................ 14 Annex 1: Data on transfers from the reserve fund ................................................................. 15 Annex 5 Expenditures of KPA and ANSA from the dedicated fund for the period January- March 2021 (KFMIS - Source Fund 23) .................................................................................... 31 Annex 6 Payments for court decisions and payments under Article 39 (2) of the LPFMA ..... 32 6.1 Payments of final court decisions, for the period January - March 2021 and 2020 ......... 32 6.2. Payments under Article 39 (2) of the LPFMA/ for the period January - March 2021 and 2020 ......................................................................................................................................... 33 Annex 7 Subsidies for public enterprises for January-March 2021 ........................................ 33 Annex 8.1 Payments for pandemic management by BO and economic categories - emergency package (00099) ................................................................................................... 35 Annex 8.2 Payments for pandemic management according to BO and economic categories - economic recovery package (00098) ...................................................................................... 36 Aneksi 9 Shpenzimet në projekte kapitale për periudhen janar – mars 2021 ........................ 38 2 1. Introduction This report contains a summary of main trends of budget revenues and expenditures during the first quarter period of 2021. The report contains summarizing analyses for the relevant period, presentation of revenues by collecting institutions at the central and local level, details on revenues by type of taxations, as well as comparisons with the previous periods and budget projections. Due to the pandemic situation, in order to reflect the costs incurred in connection with them and the recovery program, a separate section on the costs incurred is disclosed in this report. 1.1. Revenue Performance Total receipts - during the first quarter of the year 2021, the receipts amounted to 523.94 million Euros and represent 21% of total projected annual receipts, while compared to the realization of the previous year quarter we have an increase of 30%. Budget revenues amounted to 454.91 million Euros, recording an increase of 15%, corresponding to 57.65 million Euros more, compared to the quarter of the previous year. This amount of revenues represents 24% of the annual forecast, while the increase in relation to the same period of the previous year is mainly as a result in increase of tax and non-tax revenues. This trend in increase of tax and non-tax revenues comes as a result of private sector performance affected mainly by the increase in imports compared to the same period of the previous year. Tax revenues collected from Kosovo Customs have reached the gross amount of 269.96 million Euros, or 23 % of the budget plan for the year 2021, recording an increase of 32.74 million, or 14% more compared to the same period of the previous year. Tax revenues collected by the Tax Administration of Kosovo have reached the gross amount of 134.76 million Euros, or 26 % of the budget plan for 2021, recording an increase of 16.30 million euro, or 14% more compared to the same period of the previous year. Non-tax revenues have had a realization of 53.14 million euro, or an increase of 19% compared to the previous year, mainly as a result of increase of non-tax revenues from the central level for about 3.8 million euro and the concession tax of about 3.2 million Euros. Receipts from borrowings amounted to euro 58.95 million including receipt from sub- borrowings received on behalf of the external debt service. Compared to the same period of the previous year, the realization is higher by 56.17 million Euros, from the issuance of securities, as a result of the need to finance the incurred deficit. 3 1.2. Expenditure Performance Total expenditures - during the first quarter of the year 2021, the payments amounted to 520.25 million Euros and represent 20% of annual expenditure plan, while compared with the realization of the first quarter of the previous year, there is an increase of 121.21 million Euros or 30%. This period is characterized with the execution of package measures from the Recovery Program of the Government of the Republic of Kosovo, a considerable increase in capital expenditures, as well as expenditures related with managing the Covid-19 pandemic. Budget expenditures during this period amounted to 496.05 million Euros (including interest payment), recording an increase of 30%, corresponding to 113.21 million Euros more compared to the previous quarter. o Expenditures for wages and salaries amounted to 175.16 million Euros during this quarter, reaching the execution rate of 27% compared to the total annual amount budgeted for this category. The expenditures for wages and salaries during the reporting period marked an increase of 13% or over 20.57 million Euros more compared to the salary expenditures of the same period of the year 2020. This has also been affected by the payment of wages for certain categories of public officials, exposed to risk and being in front of managing the Covid-19 pandemic. o Expenditures for goods and services (including utilities) marked the amount of 57.95 million Euros, recording an increase of 11.09 million Euros, reaching this way the execution rate of 16% compared to the total annual amount budgeted for this category (including 5.96 million Euros of utilities), or an increase of 24% compared to the same period of the year 2020, mainly because in this category there were payments executed for supplies and services in managing pandemic situation. o Expenditures for subsidies and transfers amounted to 196.57 million Euros (of which 145.75 million Euros social transfers), representing an increase of 52.68 million Euros, reaching this way the execution rate of 26% compared to the total annual amount budgeted for this category or 37% more compared to the same period of the year 2020. This is due to the execution of the package for the private sector, subsidies in agriculture but also the payment of allowances for social and pension schemes. o Capital expenditures amounted to 57.86 million Euros, which represents a considerable execution rate, compared to the total annual amount budgeted for this category or the same period of the previous year. The capital expenditures during the reporting period represent an increase of 104% or 29.5 million Euros more compared to capital expenditures in the same period of the year 2020. o Expenditures for state borrowing (interest and principal payment, including returns from sub-borrowings) recorded an amount of 31.27 million Euros (of which 8.51 million Euros interest for public debt), reaching this way the execution rate of 22% compared to the total annual amount budgeted for this category, recording this way a decrease by 7% compared to the payments for this category during the same period of the previous year 2020. 4 1.3. Balance of funds on 31 March 2021 The gross balance of funds on 31 March 2021 amounted to 334.04 million Euros. Whereas, the Initial balance of funds to the Budget of the Republic of Kosovo on 1 January 2021 amounted to 329.96 million Euros. As a result of slightly higher receipts than payments, increase in tax revenues for the period January – March 2021, the balance of funds recorded
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