The Effect Of Covid-19 Pandemic in Kosovo Prishtina INTRODUCTION In the verge of changes and difficulties arising from the impact of the Coronavirus(COVID-19) pandemic worldwide, Kosovo has been experiencing a high degree of uncertainty in different dimensions such as health, education, finances and so forth. The Government of the Republic of Kosovo(RKS) has undertaken a range of critical actions to contain pandemic-induced downturns in order to address health and economic threats. A variety of measures have been tailored and introduced to serve as tools for central and local governments to ease and mitigate the effects of COVID-19 pandemic. The economic impact and changes in the financial picture in Kosovo have placed enormous budget pressure on central and local level governments. Besides the principal fiscal effect in the central level, COVID-19 pandemic has seriously affected municipalities given the fiscal interrelation between the two levels of governments. The local level has faced difficulties as a result of substantial changes in budgeting and financial management. Due to the coronavirus economic shock, local governments in Kosovo have noticed a significant decrease in income tax, sales tax and other revenues. The combination of negative indicators such as decreased revenues, increased level of unemployment, and high health costs has led to projected budget shortfalls for the municipal level. The impact of these changes in revenue, poses potential and adverse cuts to infrastructure, health, education and other important investments. All these cuts are expected to bear negative consequences in the public services sector at the local level in Kosovo. This paper aims at reporting on the changes in municipal finances and budget in the Republic of Kosovo as a result of the COVID-19 pandemic. The report showcases an outlook of the budget of municipalities as an implication of crisis management. Furthermore, the report showcases an outlook of the budget of municipalities as an implication of crisis management by analyze the effect of the pandemic in government spending and own­source revenues. 4