In economic development of every country, incomes from different taxes play a major role.So, fiscal policies shows that they can support economic development a lot, even in transitions countries.However, the slowdown in economic growth in most countries of the region as well as in the euro area has influenced the economy of Kosovo to slow the pace of growth compared with the previous year. External sector is regarded as the most influential factor in slowing economic growth as a result of the decline in exports, the marked fall of foreign direct investment as well as easy to fall recorded deliveries from immigrants. Experience from past financial crises, suggests that lasting recovery requires a review of the policies and procedures of fiscal policy, also our country in general need to come out with a clear view of what kind of coordination device they want to "invent" in order to increase incomes from different taxes and in particular to find priorities in order to invest on those sectors. On this paper we will focus on the impact that good fiscal policies have on promoting economic development and also on sustainable budget.