The Effect Of Covid-19 Pandemic in Kosovo Prishtina LOCAL GOVERNMENT RESPONSE AND WAY FORWARD Despite major changes in the business-as-usual scenario for the local level in Kosovo, municipalities have been actively engaged in undertaking and implementing protective and preventive measures to control the outbreak of the COVID-19 virus. Following a successful coordination with the central level much of the measures introduced by the municipalities in Kosovo derived from the decisions of the central government. Complementary to these decisions, the local level has set up local institutional and operational mechanisms to address threats and challenges coming for the public emergency situation. 10 The effect of changes in the local financial outlook in Kosovo has become burdensome for the municipalities in Kosovo. As we can see from the data presented above, the noticeable decrease in income tax, sales tax and other revenues at the municipal level are threats to the short-term and long-term financial stability in the municipalities. The combination of negative indicators such as decreased revenues, increased level of unemployment, and high health costs leads to project potential budget shortfalls for municipal level. The impact of these changes in revenue poses potential and adverse cuts to infrastructure, health, education and other important investments at the municipal level. All these spending cuts will bear negative consequences in the public services sector at the local level in Kosovo. Considering the unknown nature of the COVID-19 virus and the ambiguities for future developments, it is essential for municipalities to sustain their dynamic role and effective coordination with the central level to the benefit of assuring a healthier society. 10 Study on Emergency Needs and Socio-Economic Impact of Covid­19 on Local Government in Kosovo. The Association of Kosovo Municipalities. 14