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Economic Institutions Ensure Fiscal Sustainability

Since 1999, USAID/Kosovo's economic policy and institutional strengthening programs have focused on establishing key central economic institutions and the legislative and administrative framework for a free market economy. USAID is supporting public-private partnerships (PPP) at both central and local levels, strengthening the capacity of municipalities for sound public financial management and fiscal discipline, and assisting the GoK to develop and implement an action-oriented strategy for private-sector growth.

Tax collections in Kosovo considerably underperform countries in comparable economic circumstances, for both business and personal taxes. USAID is improving the operation of the tax administration to improve collections and administration, bring non-compliant taxpayers into the formal economy, and implement tax laws and regulations in a fair and transparent manner.

Current Activities

Growth and Fiscal Stability Initiative (GFSI)

USAID began supporting the Growth and Fiscal Stability Initiative (GFSI) in July 2010 in order to create fiscally sound, decentralized institutions and increase private sector involvement in the economy. GFSI has three distinct goals:
  • Support public-private partnerships (PPP) at both central and local levels
  • Train municipalities in sound public financial management and strengthen fiscal discipline
  • Assist the GoK in developing and implementing an action-oriented strategy for private-sector growth.


Efficient and Sustainable Tax Administration of Kosovo (ESTAK)

Through the Efficient and Sustainable Tax Administration of Kosovo (ESTAK) program, USAID will improve the operation of the tax administration and the tax system with resultant benefits for Kosovo's taxpayers. ESTAK aims to:
    • Strengthen Tax Administration of Kosovo capacities in order to maximize voluntary taxpayer compliance
    • Bring non-compliant taxpayers into the formal economy
    • Implement tax laws and regulations in a fair and transparent manner
    • Dramatically improve revenue realization
OUR WORK
Current activities on Economic Growth:

  • Private Sector-Led Development
    Since 1999, USAID has worked to develop the private sector with the aim of increasing sales and employment for the long-term growth of enterprises.
    ... read more
  • Economic Policies and Institutions
    USAID has undertaken several initiatives to assist Kosovo in building economic institutions capable of addressing these economic problems.
    ... read more
  • Energy
    USAID is supporting privatization of KEK's distribution (network and supply) functions. Its successful privatization must be coordinated with other privatization processes in the sector.
    ... read more
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Last Updated on: October 20, 2011