Authors: Ekrem Gjokaj, Kapllan Halimi, Muje Gjonbalaj, Stephen Leeds
Public expenditure on agriculture in Kosovo has been growing massively over the last five years, however, additional resources need to be directed to the sector in order to accelerate the attainment of agriculture’s potential positive impacts on Kosovo’s economic and social development, improve Kosovo’s agricultural competitiveness in the region and meet EU requirements. Agriculture has a share of less than 4 % of total state budget allocations. Yet this is too low a share for a sector that accounts for about 12 % of GDP, provides between 25 - 35 % of employment (mostly in the informal sector), and accounts for 12 % of total exports. Hence an increase in budget allocations should support the consolidation, sustainability and growth of Kosovo’s agro-processing industry, will provide for increased employment, and ensure a secure future for Kosovo’s people and society. This paper presents an analysis of the public finance practice and issues in agriculture in the context of the international public financial management regulations.