19th July 2022, Skopje – Parliament adopted the draft 2022 Supplementary Budget with 61 votes in favour. Total revenues in 2022 Budget are projected at Denar 245.8 billion, with budget expenditures totaling Denar 288.5 billion. Budget deficit is projected at Denar 42.7 billion, i.e. accounting for 5.3% of GDP, being lower compared to 2021.
Supplementary Budget projects funds for pension increase, funds for vulnerable categories, wage increase in certain activities in the public sector, wage increase subsidies for the companies in the private sector, additional funds for farmers for higher yields and stabilization of food prices, as well as funds for new anti-crisis measures to protect both the citizens’ living standard and the economy from the shocks caused by the ongoing price crisis.
Minister of Finance, Fatmir Besimi, elaborating on the Supplementary Budget at the Parliament, pointed out that two important goals are to be achieved with it – first, to maintain macroeconomic stability, which is essential for further growth and development of each economy, and second, to support the economy on its getting back to the pre-pandemic trajectory, as well as preserving social security for our citizens.
Upward revision by around Denar 19 billion is projected for the current transfers. This amount includes funds for the anti-crisis measures, as well as other measures aimed at targeted support for overcoming the crisis. Additional financial support is projected in the amount of Denar 4.7 billion geared towards protecting the living standard of the citizens, as well as the companies’ liquidity, amid protracted crisis on the global energy and commodities market. Additional subsidies and transfers for the farmers are also projected, i.e. additional Denar 3.2 billion added to the initially projected subsidies, in order to stimulate generation of yields and increase productivity, and to cushion the price pressures on commodities. Higher transfers to municipalities are also projected, above all as a result of the increased block grants pertaining to the increased wages by 15% for the staff in kindergartens and primary and secondary schools.
Supplementary Budget also envisages funds for increase of pensions in line with the new pension calculation 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%. Funds are also envisaged for wage increase subsidies for the employees in the private sector, including the effect from subsidizing the minimum wage contributions. Additional Denar 2.4 billion is projected for the beneficiaries of the right to guaranteed minimum assistance.
Projections on capital expenditures are revised downwards in relation to the initial ones, however, they remain at record high this year, i.e. being by Denar 8.8. billion or 37.8% more compared to past year and by Denar 16.1 billion, or twice higher, compared to 2020.