Case Study

Doubling Revenue and Fiscal Resilience in Kosovo

Digital tools and a more comprehensive approach to monitoring risk resulted in tremendous growth
Public Financial Management

The Challenge

Kosovo faced institutional and technical challenges in managing public finances, collecting revenue, and maintaining fiscal stability. A weak connection between policy and budgeting, limited access to real-time fiscal data, and outdated tax systems constrained the government’s ability to respond to citizens’ needs and support economic development.

Our Solution

Fiscal Monitoring Tools to Streamline Procedures

  • Medium-Term Budgeting and Risk Monitoring. Chemonics worked with Kosovo’s Ministry of Finance to strengthen medium-term expenditure frameworks and implement advanced fiscal risk monitoring tools. We developed macro-economic scenarios to support informed policy decisions and built capacity for sustainable debt management.
  • Digital Tax Administration. Chemonics partnered with the Tax Administration of Kosovo (TAK) in achieving 100 percent electronic tax filing. We helped streamline internal procedures, digitize six taxpayer services, and reduce the burden of compliance. We also introduced targeted audit systems that decreased corruption risk while improving voluntary compliance and revenue generation.
  • Fiscal Transparency and Public Access. We helped to institutionalize the UN Classification of the Functions of Government (COFOG) to improve fiscal transparency and implemented the Government Finance Statistics framework to publish more than 12 years of user-friendly fiscal data. Monthly reports and datasets were made publicly available to enhance accountability and citizen trust.
  • Gender-Responsive Budgeting. In collaboration with local partners, Chemonics helped introduce gender-responsive budgeting principles, training 40+ officials and supporting ministries to use gender-disaggregated data in budget planning.

The Impact

Growth with Accuracy and Transparency

With Chemonics’ support, Kosovo more than doubled its fiscal reserves and reduced the national budget deficit by 45 percent. Tax revenue projections became more accurate, while voluntary online tax filings increased by 30 percent. Kosovo’s Doing Business score improved significantly, and the World Bank recognized advances in transparency, tax administration, and government accountability. Our success in Kosovo demonstrated how aligned fiscal tools, strong institutions, and inclusive policy reforms can drive sustainable growth and restore public confidence in government.