Public Expenditures and the Impact of Public Investments on the Economy: The Case of Kosovo

The budget represents the main instrument of public financing. The budget is one of the most important economic instruments available to the Government of Kosovo. In the framework of government policies, the issue of government spending is considered quite important. The purpose of the study is to analyze the progress of the structure of public expenditures, as well as the effect of public expenditures on the economy in recent years. In order to maintain fiscal stability, attention should be paid to how much the expenses burden the budget and where their expenses are directed. In this aspect, the way of spending budget funds and the orientation of government spending for productive purposes and investment projects remains important. Methodology: For the finalization of this paper, the submitted material has the following support: local and foreign literature, as well as reports and publications from the Ministry of Finance, which deals with the issues of public spending in the Republic of Kosovo. Likewise, the local statistical source, the method of analysis and synthesis, tabular and graphic separately, comparative method, etc. were used. Results: Special attention is paid to the comparison of public expenditures and public investments in Kosovo over the years. Through this study, we aim for the given conclusions and recommendations to be taken into consideration and serve actors in the field of public finance.