Draft 2027 budget faces criticism over impact on prices

The government on Monday approved a €4.27 billion draft budget for 2027, drawing criticism over its impact on the cost of living.

Former Pristina mayor Shpend Ahmeti welcomed the increases in wages, pensions and allowances. However, he warned that without support for domestic production, these measures would increase demand for imported goods and fuel inflation. “We are subsidizing imports and driving up prices,” Ahmeti wrote, urging the government to focus on capital investment and project implementation.

LDK MP Hykmete Bajrami said prices had risen by 34% since 2021 and that a larger budget does not necessarily translate into improved living standards. Meanwhile, Arben Halilaj of the AAK claimed that only around 30% of planned capital investment had been carried out. The opposition has also accused the government of missing the October 31 legal deadline for submitting the budget to parliament.

According to official data, annual inflation in Kosovo reached 7.8% in September, the highest rate since February 2023. The sharpest increases were recorded in transport, at 23.9%, and housing and utilities, at 11.9%. Meanwhile, food prices rose at a slower rate of 2.4%.

Prime Minister Albin Kurti defended the budget, calling it a “budget for major capital investment.” He cited more than €1 billion in investment, including Pristina’s outer ring road and the Dukagjin road. According to Kurti, the economy grew by 5.4% in the first quarter and 5.1% in the second, while employment is increasing.

The budget provides for an increase in the salary coefficient from €110 to €120 starting July 1, 2027, as well as a 13th-month salary and a 25% increase in child allowances. Municipalities will receive €908 million. Approval in parliament requires 61 votes.