Budgeting is the process of governmental resource allocation in order to achieve specific social and economic goals. Since the governmental resources are scarce in most transitional countries, as is the case in Kosova, they need to be allocated based on priority needs, in order to ensure greater...

Economies are constantly hit by various shocks-that effect aggregate demand and aggregate supply and have the potential to generate recession or expansion, respective a high level of unemployment and high inflation rate. Governments use fiscal and monetary policies to try to stabilioze the economy.

In the recent decades, the budget deficit has become one of the characteristics of national economies. Furthermore,it finds its dimensions amplification. Despite this, more and more are the economists who dispute the need to balance the budget,arguing the need even the deficit and systematic use...