[REVISION HISTORY]

Kosovo 2027 draft budget and ammunition factory progress

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What changed

2026-11-09 18:00 UTC → 2026-11-09 18:02 UTC · added ~~removed~~

The Kosovo government has approved a draft budget for 2027 totaling 4.27 billion euros, an increase of approximately 300 million euros over the 2026 initial budget. The proposal includes 1.45 billion euros for subsidies and transfers, 1.085 billion euros for salaries and benefits, and 1.07 billion euros for capital investments. Key provisions involve a 13th salary for public sector employees and increased funding for essential medicines. Defense spending is a significant component, with 224.1 million euros allocated to the Ministry of Defense. This includes 122.4 million euros for capital investments to modernize the Kosovo Security Force in alignment with NATO standards, specifically targeting missile systems, drones, and cyber defense. Construction has commenced in Jahoc, Gjakova, for Kosovo’s first ammunition factory. Developed in cooperation with the Turkish state-owned company MKE, the complex will feature production lines, testing and calibration laboratories, and storage facilities. ~~While the~~ The Ministry of Defense stated that the project is proceeding according to the planned rhythm and aims to begin test production of “Made in Kosova” ammunition by the end of ~~2026,~~ 2026. However, security experts have expressed skepticism regarding this timeline. They cite the necessity of a legal framework, administrative procedures, technology installation, and staff training, noting that the Kosovo Assembly has not yet approved a law for military ammunition. Beyond defense, the budget supports a national airline and sports infrastructure for the Prishtina 2030 Mediterranean Games. However, the Association of Kosovo Municipalities has criticized the budget, noting that the municipal allocation of 908 million euros represents a proportional drop from 21.7 percent in 2026 to 21.3 percent in 2027. Additionally, Kosovo faces risks regarding EU integration, including the potential loss of 130 million euros from the EU Growth Plan if reforms in energy, bankruptcy, and public procurement are not implemented.

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