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€105 million cost of allowances, fears expressed that they will increase inflation

government

This money was taken from various budget programs and distributed without the approval of the Assembly through the Budget Law. Economists estimate that this decision could affect the increase in inflation.

105 million euros is the cost of all the 100-euro allowances that were allocated by the Government at the May 22 meeting, about two weeks before the elections.

These funds, which were not authorized by the Assembly to be allocated through the Budget Law, the Government found other ways to distribute them.

The allowances for over 322 thousand beneficiaries of social schemes and over 405 thousand children will amount to approximately 73 million euros.

In the decision taken, the Government has decided to use these funds from these categories prematurely from the relevant programs.

"For points 11. and 1.2. of this Decision, the funds are provided through the early allocation of funds from the relevant sub-programs. The Kosovo Treasury in the Ministry of Finance is authorized to take the necessary steps to allocate funds according to the calculations made by the Ministry of Labor, Family and Values ​​of the Liberation War," the government decision states.

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Meanwhile, 25 million euros will be allocated for 250 thousand private sector workers who have a salary of under 1 thousand euros. 

The Government has decided to take this money from the "Economic Recovery Program" at the Ministry of Finance, where there are a total of 30 million, and then pour it into the treasury in order to enable its distribution to workers.

Meanwhile, 7 million euros have been allocated for 70 thousand students.

The government decided to place these funds in the treasury by taking them from the contingencies in the Ministry of Finance, which is a reserve fund for unforeseen expenses.

Economist Fidan Qerimi has expressed criticism of the use of these financial resources without any urgency, especially when they are not in harmony with the budget plans for 2026.

He says that in addition to bypassing the Assembly, the allocation of these funds will have economic consequences - such as increased inflation.

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"The issue that I think the Government is getting wrong is that dealing with inflation cannot be done with a single transaction. Dealing with inflation should involve increasing salaries, pensions, and subsidies that are in accordance with the law, but which should be linked to the inflation rate. This would be the appropriate response to the impact of inflation on the lives of citizens," said Qerimi.

The Government had foreseen the inflation package worth 200 million euros.