1 LAW No. 05/L-109 on Amending and Supplementing the LAW No. 05/L-071 on Budget of Republic of KOSOVO for the YEAR 2016 Assembly
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OFFICIAL GAZETTE OF THE REPUBLIC OF KOSOVA / No. 28 / 3 AUGUST 2016, PRISTINA LAW No. 05/L-109 ON AMENDING AND SUPPLEMENTING THE LAW No. 05/L-071 ON BUDGET OF REPUBLIC OF KOSOVO FOR THE YEAR 2016 LAW No. 05/L-109 ON AMENDING AND SUPPLEMENTING THE LAW No. 05/L-071 ON BUDGET OF REPUBLIC OF KOSOVO FOR THE YEAR 2016 Assembly of the Republic of Kosovo, Pursuant to Article 65 (1) and (5) of the Constitution of the Republic of Kosovo, Article 25 of Law No.03/L-048 on Public Financial Management and Accountability, amended and supplemented by the Law No.03/L-221, Law no. 04/L-116 , with Law 04/L-194, with Law 05/L-063 and Law 05/L-007, Approves LAW ON AMENDING AND SUPPLEMENTING THE LAW No. 05/L-071 ON BUDGET OF REPUBLIC OF KOSOVO FOR THE YEAR 2016 Article 1 Purpose Purpose of this Law is to amend and supplement the Law no. 05/L-071 on the Budget of the Republic of Kosovo for the year 2016. Article 2 The scope The provisions of this law are mandatory for all institutions of the Republic of Kosovo, addressed within this law and Law No. 05/L-071 on the Budget of Republic of Kosovo. Article 3 Definitions 1. Terms used in this Law shall have the following meanings: 1.1. The basic law - means the Law No. 05/L-071 on the Budget of the Republic of Kosovo for 2016. 1.2. LPFMA - means Law on Public Financial Management and Accountability. 2. Other terms used have the meaning as defined in the basic law. Article 4 Article 1 of the Basic Law, after sub-paragraph 1.31., a new sub-paragraph 1.32. is added with the following text: 1.32. Investments based on the investment clause - implies the capital expenditures, as defined in Article 22.A.7 of LPFMA, specifying “For purposes of compliance with the deficit ceiling under paragraph 1. of this Article, the capital expenses for projects 1 OFFICIAL GAZETTE OF THE REPUBLIC OF KOSOVA / No. 28 / 3 AUGUST 2016, PRISTINA LAW No. 05/L-109 ON AMENDING AND SUPPLEMENTING THE LAW No. 05/L-071 ON BUDGET OF REPUBLIC OF KOSOVO FOR THE YEAR 2016 financed externally, by supranational financial institutions, European Union or its institutions or foreign governments or their development agencies, will not be taken into account”. Article 5 Article 2 of the basic law is amended as follows: 1. Budget of the Republic of Kosovo for the fiscal year specified in Table No.1, is adopted pursuant to this law. 2. Table No. 1 as adopted pursuant to paragraph 1. of this Article, shall be attached to the basic law and supersedes Table No. 1 of the Basic Law. Article 6 Article 3 of the basic law, paragraph 1. is amended with the following text: 1. Budget appropriations from the Kosovo Fund for fiscal year 2016 as set out in Table 3.1, Table 3.1A, Table 3.1.B (Investment Clause) and Table 4.1 attached to this Law shall be adopted based on this law. Article 7 Article 5 of the Basic Law, after paragraph 2 is added paragraph 3. with the following text: 3. At the subprogram Chambers of Health Professionals within the Ministry of Health, all of revenues earned in 2016 by this subprogram are transferred to the account of the Chamber of Treasury. Article 8 Article 9 of the basic law, paragraph 6. is reworded with the following text: 6. For period January-December 2016, to the Radio Television of Kosovo is appropriated an amount of nine million six hundred thousand (9.600.000) Euro, in the economic category subsidies and transfers. Before each quarter, RTK shall submit to the Assembly of Kosovo the planned expenditures program. At the end of each quarter, RTK shall submit to the Assembly of Kosovo the report on the costs incurred. Article 9 Article 13 of the basic law, after paragraph 5. are added paragraphs 6. and 7. with the following text: 6. The funds appropriated to the Ministry of Health at the subprogram Respective Pharmaceutical Services-Source of Financing Borrowing will be spent in accordance 2 OFFICIAL GAZETTE OF THE REPUBLIC OF KOSOVA / No. 28 / 3 AUGUST 2016, PRISTINA LAW No. 05/L-109 ON AMENDING AND SUPPLEMENTING THE LAW No. 05/L-071 ON BUDGET OF REPUBLIC OF KOSOVO FOR THE YEAR 2016 with the Memorandum of Understanding signed by the Minister of Health and the respective Mayor. 7. The funds appropriated to the Ministry of Finance in table 3.2.B, Investment Clause as unallocated contingency, will be transferred by the decision of the Government to budget organizations in which the respective projects will be implemented and for which the borrowing agreement will be signed in advance by the Minister of Finance with the International Financial Institutions to finance investment projects through investment clause under LPFMA. Concerned funds will not be allocated by the Treasury to KFMIS before being reimbursed by the International Financial Institutions. Constraints set out in Article 30 of the LPFMA and Article 14 and 15 of the Basic Law shall not apply to this paragraph. Article 10 Entry into force This law enters into force on the day of publication in the Official Gazette of the Republic of Kosovo. Law No. 05/L-109 14 July 2016 Promulgated by Decree No.DL-027-2016, dated 27.07.2016, President of the Republic of Kosovo Hashim Thaçi. Tables of the Law no. 05 / L -109 on Amending and Supplementing the Law no. 05 / l-071 on the Budget of the Republic of Kosovo for 2016 attached by the law are published in the Official Gazette website (gzk.rks-gov.net) 3 Table 1. General Government Revenues and Expenditures 2015 2016 2016 2017 2018 2019 Description Actual Budget Review Estimated Estimated Estimated in millions of Euros 1. TOTAL REVENUES 1,470 1,602 1,635 1,644 1,702 1,779 1.1 TAX REVENUES 1,269 1,370 1,410 1,426 1,482 1,558 Direct taxes 198 222 227 237 248 262 Tax on corporate income 68 71 74 76 80 85 Tax on personal income 109 124 127 130 137 145 Property tax 20 20 20 25 25 26 Other direct taxes 2 6 6 6 6 6 Indirect taxes 1,107 1,173 1,208 1,230 1,280 1,345 Value added tax (VAT) 611 667 683 702 740 777 Customs duty 131 126 128 112 104 107 Excise 361 374 391 410 431 455 Other indirect taxes 3 6 6 6 6 6 One off revenues from tax debt collection 0 10 10 0 0 0 One-off revenues from tax debt of Socially owned enterprises 0 8 8 3 0 0 Tax refunds -36 -43 -43 -44 -46 -49 1.2 NON-TAX REVENUES 188 219 212 205 207 209 Fees, charges and other from BO-s of Central government 84 96 96 96 97 98 Fees, charges and other from BO-s of Local government 38 60 60 54 54 54 Concessionary tax 7 10 8 10 11 12 Royalties 30 30 33 30 30 30 Revenues from mobile market liberalisation 15 0 0 0 0 0 Dividend income 15 23 15 15 15 15 0 1.3 BUDGET SUPPORT AND GRANTS 0 1 1 1 0 0 1.4 DONOR DESIGNATED GRANTS 13 12 12 12 12 12 2. TOTAL EXPENDITURES 1,564 1,684 1,732 1,821 1,903 1,982 Off which: expenditures from PAK dedicated revenues 6 12 12 9 9 9 Expenditures financed from carried over OSR 28 2.1 CURRENT SPENDING 1,149 1,211 1,221 1,258 1,292 1,330 Wages and Salaries 525 548 549 560 585 619 Goods and Services 205 209 207 218 220 222 Subsidies and Transfers 418 453 466 478 485 487 Social transfers 400 439 452 468 475 477 Subsidies for Public Enterprises 18 14 14 10 10 10 Budget Reserves 5 5 6 6 6 Net Lending -2 -7 -7 -11 -15 -15 Off which: loans to POEs 0 0 0 0 0 0 POE loan repayments -2 -7 -7 -11 -15 -15 2.2 CAPITAL EXPENDITURES 404 463 500 558 610 650 off which: financed from reguluar budget funding 463 485 344 383 419 existing capital expenditure financed through IFIs 0 24 27 31 financed through domestic debt 0 100 100 100 financed through the "investment clause" 15 90 100 100 2.3 Expenditure financed from Donor Designated Grants. 13 12 12 12 12 12 3. PRIMARY BALANCE -94 -82 -97 -177 -202 -203 Interests payment -17 -26 -25 -30 -30 -30 4. Overall balance (as per fiscal rule) -78 -95 -95 -108 -123 -124 5. OVERALL BALANCE -111 -107 -122 -207 -232 -233 6. FINANCING -111 -107 -122 -207 -232 -233 6.1 Net external financing 38 80 143 79 104 62 Receipts: 65 149 209 140 128 131 Drawings 66 149 209 140 128 131 off which: IMF 36 100 136 16 0 0 on-lending 22.5 23 32 10 1 0 IFI through the investment clause 15 90 100 100 Outlays: -28 -69 -67 -61 -24 -69 Debt Principal payment -28 -69 -67 -61 -24 -69 6.2 Net domestic financing 73 27 -21 128 128 171 Receipts: 457 425 425 474 469 424 Domestic borrowing-new issuance 121 100 100 100 100 100 Domestic borrowing-re-financing 257 281 281 305 300 285 One-off financing 67 33 33 60 60 30 Financing from the use of OSR stock (PAK, Municipalities) 13 12 12 9 9 9 Outlays: -285 -304 -312 -315 -301 -285 Ri-financing of domestic debt -257 -281 -281 -305 -300 -285 On-lending -22 -23 -32 -10 -1 0 Outlays that increase the stock of OSR (PAK, Municipalities) -6 0 0 0 0 0 Bank balance net change 99 94 135 31 40 -32 7.