Kosovo Faces Budget Uncertainty as Government Formation Fails

RksNews
RksNews 3 Min Read
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Following the failure of the Kosovo Assembly to approve a new government on October 26, the country faces uncertainty over the 2026 state budget, raising concerns about the continuation of public services and economic stability.

Mandate-holder Albin Kurti presented a proposed cabinet, but the vote fell short of the required majority, leaving Kosovo without a fully empowered government. The lack of newly elected institutions risks Kosovo entering 2026 without an approved budget, which experts warn could halt public payments and capital investments.

President Vjosa Osmani is now tasked with consultations with political parties to find a way forward. Her office emphasized the importance of passing the 2026 budget and the Growth Plan to ensure institutional stability and normal government functioning. According to Osmani’s media advisor, Bekim Kupina, the President will push for a political compromise to safeguard the interests of Kosovo and its citizens.

Prime Minister in office, Albin Kurti, stated that the Law on the Government allows the current administration to propose the 2026 budget, but noted that further consultations with legal experts are necessary due to uncertainties in parliamentary procedures. Kurti highlighted that a country without a budget cannot move forward, stressing the complexity of passing the proposal in a parliament that has yet to form committees and secure a 61-member majority.

The Democratic Party of Kosovo (PDK) argued that no extraordinary session can be held and the budget cannot be discussed without a newly elected government, according to MP Vlora Çitaku.

In a joint letter to President Osmani, 21 civil society organizations warned that a missing 2026 budget would paralyze public salaries, social transfers, and infrastructure projects, affecting hundreds of thousands of citizens. They proposed legal solutions, such as allowing the current government to submit the draft budget to the Assembly or extending the 2025 budget until March 2026 to avoid a governance and financial crisis.

Legal experts, including Albert Krasniqi from Democracy Plus and Gëzim Shala from the Kosovo Justice Institute, emphasized a critical distinction between a government in resignation and a caretaker government. They argued that the caretaker government, elected by the previous legislature, does not have the mandate to propose the budget for the new legislature, making it legally problematic for Kosovo’s Assembly to approve it.

According to Kosovo’s Public Finance Management Law, the 2026 budget should have been submitted to the Assembly by October 31, 2025, through the Ministry of Finance, Labour, and Transfers. Without immediate solutions, Kosovo risks entering 2026 without a legally approved budget, threatening public services and economic stability.