FISCAL TRANSPARENCY IN THEORY AND PRACTICE: THE CASE OF KOSOVO

The aim of this research is to analyze and find out the major issue of fiscal transparency in theory and practice and the case of Kosovo. In this analysis we have used the research method of case study. The results of research show that are given various definitions from different aspects of transparency in general and of fiscal transparency particularly in financial theory. Nowadays, transparency has been made an indicator of the quality of institutions and credibility of modern states. Frequent social and political changes in Kosovo from 1999 until the second half of 2008, and those that followed them have also had their effects on the management of public finances, budgetary procedure and fiscal transparency. With the declaration of independence of Kosovo and the entry into force of the constitution, de jure, the role of parliament in the budgetary procedure was increased. Despite the achieved results, this analysis points out a lot of deficiencies that are necessary to be addressed in order to increase fiscal transparency in Kosovo. Among other things, transparency should be increased by strengthening the role of parliament in the budgetary procedure.