Fiscal Policies of EU in Kosovo and their Harmonization with the EU Countries

The aim of this paper is to present the main challenges of fiscal policies in Kosovo. Furthermore, we have presented some legal procedural alternatives to to eliminate deficiencies of fiscal policies in Kosovo. One of the main challenges of fiscal policies in Kosovo that also other countries are are facing with in different periods is the harmonization of national legislation with EU legislation regarding the fiscal policies. Principally there are some similarities of the legislation regarding fiscal policies with EU, but the dissatisfaction arises because the application of these dispositions is not done in professional way and often the distribution of the state budget is done in regions and municipalities that bring less revenues than the budget they receive and this disbalanced fiscal policy have negatively influenced in the financial and fiscal stability of the country. The Republic of Kosova principally is an unitary state and the fiscal revenues are concentrated in the budget of the state, but there is no an equitable distribution in the regions or municipalities that have contributed in attracting taxes and levies. The government gives more budget to the favorite municipalities and this is not a violation of the law but is a violation of principles of democracy because who pay more taxes also should receive more revenues. DOI: 10.5901/ajis.2015.v4n2s1p6