E-ISSN 2281-4612 ISSN 2281-3993 Academic Journal of Interdisciplinary Studies MCSER Publishing, Rome-Italy Vol 4 No 1 S1 March 2015 61 Role and Impact of Budget as an Instrument of Financial and Developmental Policy in Kosovo PHD.Cand., Enkeleda Lulaj University “Haxhi Zeka” in Peja Enkeleda.lulaj@unhz.eu Doi:10.5901/ajis.2015.v4n1s1p61 Abstract In this research paper will be presented a detailed description of the methodology for analysis the budget and the improving connections, and budget planning for the provision of financial and developmental policies in Kosovo. This paper has been written intelligibly, so that could be read and easily understood by non-specialists of field of economics and finance. State budget is one of the most important economic instruments, to have Government of Kosovo in available. Drafting and spending the budget Kosovo has been the competence of local institutions since the establishment of the Provisional Institutions. However, even after more than a decade from the time when local institutions have enjoyed the right to drafting the costs of the state budget, there are major problems in drafting procedures, expenditure and budget reporting. Kosovo budget in some cases is approved hastily and without debate in the Assembly of Kosovo. The current form of appropriations and budget reports is not at that level of detail as to enable the members of the Assembly and citizens understand clearly the way of divisions and expenditure of public money. Keywords: state budget, expenditure, revenue, budget organizations, budgetary allocations, budgetary reporting etc. 1. Introduction Since the establishment of the Provisional Institutions of Self-Government (PISG) in 2001, drafting and approval of Budget of Kosovo (originally known as the Kosovo Consolidated Budget) has been the competence of local institutions. But, the final right of approval, even radical changes until 2008 had been done by the Special Representative of Secretary-General (SRSG) of the UN. Even after the declaration of independence, budget drafting remained exclusive jurisdiction of the state institutions of the Republic of Kosovo. Before the declaration of independence, and in time when local institutions known as PISG, the state budget, in most cases is approved with procedures of accelerated, or even using the powers reserved by the SRSG . Ministry of Finance, as the main institution which coordinates the budget process and budget organizations separately, must be transparent in the publication of detailed budget data. Hence, budget of state plays an important role in the development and economic stability. 2. The Purpose of the Study This paper aims to give an answer to some research questions that relate to strategies that are implemented by the Kosovo budget at central and local level, as well as in all budgetary organizations. The main purpose of this paper is to analyze the existing situation of recognition and the practical implementation of the budget by budget organizations. To realize this scientific paper i am based in public finance literature and practice that has state of Kosovo for planning and approving the budget 3. Objectives of the Research Research objectives related with public finances, specifically the state budget of Kosovo into central and local level, approval of budget, his planning, revenue growth, the classification of expenditures, government grants, budget allocation for municipalities etc. Review of literature on public finances, recognition with strategies budget, formulating and implementing their in practice. Giving clear recommendations about what should be improved in the future Kosovo in order to benefit from the formulation and implementation of strategies for finances, as and tell the issues that may require a more detailed study in the future, specifically for policy of budget.