Author : Gazmend Deda and Arben Tërstena

Informality is a widespread global phenomenon which has become a feature of developed and developing countries. To achieve economic and political stability, national governments are oriented towards achieving economic equilibrium through state mechanisms. State institutions use different instruments to promote economic expansion, reduce unemployment and achieve macroeconomic objectives. Private sector has been indispensable for achieving important development outcomes around the world and especially in Kosovo. This sector accounts the largest share of GDP in many developing countries. Reducing the level of unemployment and economic development is being sought through stimulating and creating a private sector business climate. Fiscalization and reimbursement are two of the sensitive issues that have had a positive impact on the growth of state revenues, but in this study we will study the impact on the business side.

Keywords: Fiscal policy, market economy, unemployment, economic development, informality, fiscal evasion, reimbursement, GDP

Article published in International Journal of Current Engineering and Technology, Vol.9, No.4 (July/Aug 2019)