17th November 2021, Skopje – 4.6% growth projected in 2022 is based on scaled-up gross investments by 8.5%, increased capital expenditures by 27%, better execution of capital expenditures compared to the same period last year, as well as the probability for its improvement by the end of the year.
{Minister of Finance, Fatmir Besimi, said in his interview for 24 Analiza Show, underlining that with the CAPEF mechanism already put in place, rewarding the good performers among the budget users in terms of high capital expenditure execution, the budget users, which were withdrawn EUR 25 million at the end of September, but managed to execute 70% of the capital expenditures, were refunded EUR 15 million withdrawn funds yesterday.
“We already have a plan and designed activities how to implement it. Capital expenditure execution last year accounted for 81%. Their execution has also improved this year with the established CAPEF mechanism, accounting for 55.8% so far. During the same period in 2020, 2019 and 2018, execution accounted for below 50%. I accept the challenges, considering the situation we are facing. Therefore, Growth Acceleration Plan has been designed, a concept which, in addition to the financial instruments, also includes a chapter on strengthening the institutional capacities, Minister Besimi said.
He went on saying that other aspects, playing a role in better execution of capital expenditures, will be also applied.
-I am not saying that a magic wand will be waved next year and everything will be resolved all at once. Still, the path how to improve the execution is traced, and I believe the projections put in writing and this approach imply larger responsibility for us to bring them about. The higher the goals the greater the chances of being accomplished, the Minister said.
He also tackled the energy crisis and the measures and activities the Government undertakes, underling that funds are allocated to ESM (Power Plants of North Macedonia) in 2022 as well, in addition to EUR 65 million projected for this year for ensuring its liquidity.
-It is important for the price shock to be mitigated for the households, as well as the small- and medium-sized enterprises, supplied with electricity on the regulated market. We monitor the trends and respond and will react so as to prevent energy shortage and large price effect. It is important that the approach the Government has taken is aimed towards sustainable solutions, which matters, Besimi said.
As regards public debt, its level will be revised downward with the supplemented 2022 Draft Budget, which will be submitted to the Parliament. Borrowing will be solely made for capital investments, i.e. out of projected net borrowing in the amount of EUR 590 million, EUR 545 million is for capital expenditures, funds injected directly into the economy, meaning more funds for the domestic companies, higher job growth. He announced that that Eurobond will be issued at the most convenient moment, with many new instruments issued on the domestic market.
-We plan for the Bloomberg Terminal to be launched next year to the end of auctioning for this new instruments, as well as the existing government securities. We can develop our market through this Terminal. In the mean time, we are undertaking activities aimed at developing the financial market, Minister of Finance said.
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