With the announcement of early elections in Kosovo on December 28, Article 24 of the Law on Public Financial Management is activated, enabling a budget extension for the first two months of the following year to cover public-sector salaries.
According to this law, such an extension may occur if general elections are held less than four months before the new fiscal year begins, specifically before January 1.
This two-month extension “ensures a budget allocation for each budgetary organization equal to 16.67 percent of the allocation provided for that organization under the Law on Budget Appropriations,” the Law on Public Financial Management states.
On November 20, Kosovo’s President Vjosa Osmani set December 28 as the election date after deputies failed twice to elect a new executive.
Osmani, who held consultations with political parties, said that Wednesday’s meeting did not produce an agreement for deputies to hold a session to approve budget extensions, ratify several international agreements, and pass the budgets for three municipalities—Pristina, Gjilan, and Zubin Potok—as well as the budget for Radio Television of Kosovo.
Kosovo is entering 2026 without an approved state budget, despite the caretaker government led by Albin Kurti having approved a draft budget law. Parties that were in opposition during the previous mandate criticized the move, arguing that Kurti, as a caretaker prime minister, cannot submit to the new legislature—formed after the February 9 elections—a draft law prepared by his government.
President Osmani had repeatedly expressed concern over the failure to approve the budget or a budget-appropriations law, stating that public-sector salaries could be put at risk. She even said she would be willing to submit a proposal to Parliament for a budget extension to ensure funding “at least until March.”
Meanwhile, economic experts had earlier warned that the country was heading toward a budgetary collapse, stating that—for the first time—the state could “shut down” and be unable to pay for any public services. /REL
