News|

2nd June 2022, Skopje – With respect to the measures focused on the vulnerable categories, as well as the gradual fiscal consolidation, the new anti-crisis measures will be appropriately targeted as well. Taking care of the citizens and the economy will continue, while remaining committed to conducting a prudent fiscal policy, thus reducing the budget deficit in the medium term. Under the Supplementary Budget, around EUR 76 million has been projected for anti-crisis measures, as well as subsidies for minimum wage increase, significant additional funds for agricultural subsidies – to end of increasing the yields, as well as funds for increasing both the pensions and the transfers for guaranteed minimum income.

Immediately upon adopting the Supplementary Budget, the implementation of the most recent anti-crisis measures will commence within the shortest period possible. The new model of targeted measures, which is in line with the latest recommendations of the international financial institutions – the IMF and the World Bank, the EU and the experts, incorporates three goals: protection of the most vulnerable categories, fair distribution of funds and gradual fiscal consolidation, which is of great significance for preserving both the public debt stability and the stability of the domestic economy as a whole.

Despite the projected widened deficit under the Supplementary Budget, it is still below the 2021 level, and significantly below the level during the crisis in 2020. Medium-term planning and projections include the following: narrowing the budget deficit by improving the budget revenue collection, measures for reducing and preventing the grey economy; reducing and restructuring the budget expenditures, cutting the non-priority and non-essential costs, greater support to the private sector and the innovations aimed at boosting the competitiveness, high allocations for social protection of the most vulnerable categories and revision of the methodologies for transfers and subsidies, changes in the sources of financing the budget deficit, greater diversification of the sources of financing the deficit, financing and realizing certain projects through public-private partnerships and establishment of Development Fund.

The first set of measures provided for cushioning the initial severe blows of the crisis, such as preventing the price shock and the speculative price surge, thus halting the inflationary pressures and preventing even higher inflation rates. Tax relief was accompanied by the measures aimed at freezing the prices and setting the margin cap on some commodities. So-far implemented measures, geared towards combatting the price and energy crises, amount to around EUR 615 million, being one of the highest fiscal stimuli allocated in the region.

Also available in: Macedonian Albanian

Leave a Reply

Your email address will not be published.

Close Search Window