13th June 2022, Skopje – Draft Supplementary Budget is aimed at attaining two main objectives: first, to maintain macroeconomic stability, which is of crucial importance for further growth and development of every economy, and second, to support the economy getting back to the post-pandemic trajectory, as well as to maintain social security of the citizens, Minister of Finance, Fatmir Besimi, underlined when elaborating on the Supplementary Budget at the Financing and Budget Parliamentary Commission.
“One of the objectives to be attained with this document is targeted support to both the citizens and the companies so as for they to overcome the challenges imposed by the recent global crises. Anti-crisis measures will contributed therefore, as well as the increased pensions and minimum wage, additional funds for supporting the vulnerable categories and increased agricultural subsidies, all to the end of boosting the domestic production. The second objective is to accomplish an ambitious investment agenda, amounting to more than half a billion euros, as regards infrastructure, for the purpose of underpinning the economic growth amid slowdown of the global economy, as well as fiscal sustainability and maintenance of macroeconomic stability”, the Minister pointed out.
Under the draft Supplementary Budget, revenues are projected in the amount of Denar 245.8 billion, being by around Denar 6.9 billion higher compared to the initial projections, while expenditures are projected in the amount of Denar 288.5 billion, being by around Denar 16 billion more in relation to the initial 2022 projections.
Capital transfers are projected in the amount of Denar 189.7 billion or by Denar 19 billion more compared to the 2022 projections.
“They include funds for the anti-crisis measures, as well as other measures aimed at targeted support for overcoming the crisis. I would briefly talk about why the support is targeted. If the first set of measures was broad, aimed at slowing down the inflation spiral, the upcoming measures will be aimed at specific target groups most affected by the crisis, which could not cope with these effects without these measures in place. This is actually what the international financial institutions, such as IMF and the World Bank, as well as the European Union, have recommended – measures to respond to the needs of the target groups”, Besimi said.
Additional financial support is envisaged under the Supplementary Budget, amounting to Denar 4.7 billion, as support to protect the living standard of the citizens, as well as the companies’ liquidity, amid protracted crisis on the global energy products and commodities market.
Additional agricultural subsidies and transfers to farmers are also envisaged, i.e. Denar 3.2 billion added to the initially projected subsidies. The funds will be used to stimulate both the generation of yields and productivity, and cushion the price pressures of commodities.
Higher transfers to municipalities are also projected, above all as a result of the increased block grants pertaining to the increased wage by 15% for the staff in the kindergartens, the primary and the secondary schools.
Supplementary Budge also envisages funds for increase of pensions in line with the new methodology, according to which the pension indexation is carried out as per the CPI trends, accounting for 50%, and the increase in the average wage paid to all employees, accounting for 50%. Additional Denar 2.4 billion is projected for the beneficiaries of the right to guaranteed minimum assistance.
Funds are also envisaged for wage increase subsidies for the employees in the private sector, including the effect from subsidizing the minimum wage contributions.
Expenditures related to wage payment are projected in the amount of Denar 33.2 billion, including the effect as regards the harmonization of the wages of the budget users’ employees with the minimum wage, on one hand, and the effects from curbing new jobs, as well as optimizing the public administration, on the other.