Public Debt and its Effects on Kosovo's Economic Development

AuthorAdnan Berisha
Pages157-166
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
Vol. 2 No. 2
June, 2018
ISSN 2519-1284
Acces online at www.iipccl.org
157
Public Debt and its E ects on Kosovo's Economic Development
MSc. Adnan Berisha
Abstract
Public Debt in Kosovo, just like in almost all countries of the world, it is one of the nancial
instruments needed to cover the budget de cit that is presented in the case of public
expenditure planning that exceeds the planned revenue from the state and this phenomenon
is almost present in all countries of the world.
In this research we will concentrate on the fact that public debt has an impact on the overall
economic development of the republic of Kosovo in particular. In this paperwork we will see
for what purpose the public debt in Kosovo is to be made, what projects will be nanced by
public debt or using these debts to nance rentable, productive projects or projects that do
not bring bene ts such as operational nature funding which returns as a burden to successive
generations, as it is known that debt repayment requires time including various generations.
We will also see what the level is the total debt, does the Republic of Kosovo respect
recommendations on the level of public debt in relation to Gross Domestic Product (GDP) as
de ned on the basis of rules dra ed by international institutions as well as the laws on public
debt in Republic of Kosovo . We will become familiar with how much Kosovo has a obligation
to the public debt received from external and internal sources, when the debt portfolio in
Kosovo has been established, and how much debt has begun, how has it been the trend of
public debt growth over the years and is this trend going in line with GDP.
In this paperwork we will see how much it is at risk for the for bankruptcy of the Republic of
Kosovo over the public debt, we will also make comparison of Kosovo's public debt with the
countries of the region such as Albania, Serbia, Macedonia and Montenegro, but also other
countries that have interesting history to study such as the case of Greece, Germany, USA etc.
also looking and these states in to relations between public debts and GDP.
Keywords: Public Debt, GDP, Public Expenditures, Public incomes, Budget de cit.
Introduction
Public Debt is a nancial obligation or liability that a Government has to pay a
certain amount at a certain time to creditors who are the holders of bonds issued by
the Government from the time of the debt collection. The public debt arises as the
Government needs to implement the planned government al projects in cases where
funding of these projects is impossible by the State budget.
Public budgets are money deriving from nancing contracts, treasury bills, bonds,
overdra s, or other securities issued at the expense of the out ow of funds and then
repayment of liabilities such as instalment payments, interest, commissions, and nes
of di erent nature. Public debt is one of the biggest problems almost in all states and
we can say that it is a bad necessary one since it is a heavy burden on the society but
the only way to cover the budget de cit, therefore, it is necessary.
In spite of the problems that public debt has in itself, states are obliged to dra
strategies for public debt management in order to have the lowest cost and, of course,

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