13th June 2022, Skopje – Public debt has been reduced by additional 2.2 percentage points. Today’s published data demonstrate that as of the first quarter of 2022 inclusive, public debt has been reduced to 54.9% of GDP. At the same time, the general government debt has also been reduced, accounting for 46.8% at the end of March, being lower by 1.9 percentage points.
Additional reduction of public debt speaks in favor of the well-set fiscal policy and the sound public finance management, in particular as it is recorded in times of crisis.
We remain committed to further consolidation of the fiscal policy and restructuring of public expenditures by gradual reduction of the budget deficit and the public debt.
Key elements of the fiscal policy in the upcoming period are redesigned and improved public finance structure, through increased share of capital expenditures, as well as the gradual fiscal consolidation. Budget deficit accounted for 8.2% of GDP in 2020 and 5.4% of GDP in 2021. Such downward trend continues this year as well. In the first four months, i.e. January-April 2022, deficit being lower by 44%, was recorded compared to the same period last year. Thus, deficit of 5.3% of GDP is projected this year, being projected at 4.2% in 2023, 3.6% in 2024, 3.2% in 2025, 3.0% in 2026 and 2.8% in 2027.
At the same time, we remain committed to further public debt reduction to 60% of GDP, i.e. below the Maastricht criteria. Thus, as per the revised Public Debt Management Strategy, in the medium -term, public debt will stabilize by 2027, to be reduced to 56.5%, while general government debt will be reduced to 50.2%.