Abstract
Fiscal policies play an important role in the economic development of a country. Finding more favourable fiscal policies allows not only raising the necessary monetary funds for the functioning of the state but also the distribution of budget revenues in different development projects which will have an important role in economic development and the development of conditions for operation of private businesses as a condition for a sustainable economical growth. While in the after war period in 1999 the goal of fiscal policy has been meeting the immediate needs for normal functioning of life in Kosovo today fiscal policies should be in place for a sustainable economic development which will be a guarantee for state operation thus creating a healthy climate not only for businesses but also for our population. Changes in the world and globalization have had an impact in having a strong competition between different economies, including the economies of most developed countries of the world. As all the economies of other countries so the Kosovo economy as a whole and businesses in particular are not immune to this competition but they daily face these competitiveness issues not only form the competition of regional and European countries, but also from businesses from all continents. The Kosovo economy and the one of all countries in transition faced many difficulties which have affected the development of local businesses and the competitiveness of those businesses compared to businesses in the region and beyond. Through this paper we analyzed fiscal policies that are applied in Kosovo from 1999 to 2014 and we measured the impact of these fiscal policies in the overall development of Kosovo businesses. Particular emphasis in this paper was put on the steps to be taken by the government and substantial reforms to be made in order to establish fiscal and commercial facilities which will affect the growth of local businesses, increase their competitiveness and with it the increase of employment and social welfare of the citizens as a strategic goal for Kosovo and its economy. DOI: 10.5901/ajis.2015.v4n1s2p245
Highlights
Fiscal policies are a group of all measures undertaken by the State in respect of income, wealth and accumulation made by natural and legal persons for the purpose of fund raising to finance public expenditures
Kosovo since 1999 until the declaration of independence in 2008 did not have its own autonomous fiscal policies but they have been applied by the United Nations Mission UNMIK through the so-called UNMIK Pillar II Regulation which has been responsible for making and implementation of economic and fiscal policies in Kosovo
By analyzing the results of those fiscal policies it is obvious that they were mainly oriented to maintaining financial stability and very little impact on Kosovo's economic growth, increase of domestic production and along with the increase of competitiveness of SOEs with those of the region and beyond
Summary
Fiscal policies are a group of all measures undertaken by the State in respect of income, wealth and accumulation made by natural and legal persons for the purpose of fund raising to finance public expenditures. State affects all economic costs such as salaries, employment, economic growth etc The aim of these measures is for the state to have an impact and regulate the cyclical movements in the economy respectively to affect the growth and development of the economy, to increase domestic production and along with the increase of the employment level. By analyzing the results of those fiscal policies it is obvious that they were mainly oriented to maintaining financial stability and very little impact on Kosovo's economic growth, increase of domestic production and along with the increase of competitiveness of SOEs with those of the region and beyond. The period since 2008 until now even though it was proclaimed that changes were made in fiscal policies compared to those applied by the UNMIK regulation, and that those policies will directly affect the growth of domestic production, growth the competitiveness and profitability of Kosovo businesses, increasing foreign direct. From 2008 until now there are some changes to tax rates which in one way or another are adapted to those in the region but did not create such fiscal policy which would enable the business community in Kosovo to substantially feel them and which would enable businesses in Kosovo competitive to those from abroad, and which would make foreign investors feel these changes in order to invest their capital in Kosovo and that investment would have an effect on employment, consumption, growth GDP and why not create and increase revenues for the state budget
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