Kosovo is set to enter the new year under strict budget limitations, operating with only 1/12 of the current budget due to the failure to form a new Government and the subsequent dissolution of the Assembly. To avoid a prolonged financial blockade, the tenth legislature—which will emerge from the December 28 elections—must approve the 2026 budget before the end of February 2026.
The dissolution of the ninth legislature following unsuccessful attempts to form a new Government has triggered legal restrictions on budget spending as the country transitions into the new fiscal year without a newly approved budget.
According to the Law on Public Financial Management, when Kosovo enters a new year without an adopted budget, automatic limitations take effect.
Article 24 specifies that if no parliamentary elections were held in the previous four months, the budget allocations from the preceding year are treated as extended for the first month of the new fiscal year, providing each budget organization only 8.33% of last year’s approved allocation.
Under these conditions, preventing a financial blockade requires the next Assembly to pass the new budget by the end of February 2026.
Economist Shkumbin Misini, calling the political decision-makers irresponsible, outlined several consequences—ranging from hardships for citizens to setbacks in investments:
“Contracting companies have deadlines, and unpaid obligations automatically incur penalties… After the elections, we will face the same crisis again. It may take months to reach an agreement because we cannot be sure how long it will take to constitute the Assembly. Our politicians have proven to be irresponsible,” Misini said.
Economics professor Mustafë Kadrijaj emphasized that the situation is entirely political:
“Neither the law nor the institutions that uphold these principles are to blame. This is purely a political problem created by the political parties, resulting in a highly undesirable situation.”
On Thursday afternoon, President Vjosa Osmani announced that she had proposed to political parties to hold a session before the dissolution of the Assembly to address the budget issue and extend the current budget for at least three months.
