31st October 2022, Skopje – Reforms in the field of public finance implemented by the Government and the Ministry of Finance are in line with the attained progress as regards the EU integration. Reforms gained momentum by launching both the negotiations and the screening process. Under the Ministry of Finance, Action Plan for Implementation of the Recommendations under the most recent EC Report, has been already prepared, accompanied by the ongoing activities aimed at practical implementation of the reforms, already noted in the EC Progress Report, such as the Organic Budget Law.
During today’s meeting between Minister of Finance, Fatmir Besimi and EU Ambassador to North Macedonia, David Geer, efforts our country makes on its road to EU accession, have been affirmed. Minister underlined that the announced EU financial support worth EUR 80 million, aimed at coping with the crisis, as well as the provided investment package of EUR 500 million intended for the whole Western Balkan region, also speaks in favour thereof.
“Republic of North Macedonia keeps taking actions for accomplishing the set goas, all to the end of achieving more prosperous society, higher economic growth, as well as EU accession, this being accompanied by substantial financial and technical support extended by the EU. Under the Economic Reform Program prepared every year together with the EU, measures and policies getting us closer to the EU Standards, have been defined. There are ongoing activities aimed at the new Economic Reform Program, which should be adopted by the Government in January 2023. Resources made available via the IPA Funds significantly contribute to the implementation of major infrastructure projects”, Minister Besimi pointed out.
He thereby stressed that the sound economic policies are also acknowledged by the international financial institutions, also affirmed by the IMF support via the Precautionary and Liquidity Line – PLL, which funds will be used for coping with the consequence of the energy and price crisis.
“This support is significant for Republic of North Macedonia, which was strongly affected by the consequences of the energy and price crisis, to be geared towards improving the living standard of the population, boosting the liquidity of the economy, as well as ensuring stability in supplying energy products, in particular electricity”, Minister stressed, thereby adding that the Government has already adopted two sets of anti-crisis measures, worth EUR 750 million, and that, as of last year, financial support was provided for ESM, for the purpose of lower electricity generation costs and lower costs for the households and 70 thousand companies on the regulated market, Minister said.
At the meeting, it was also pointed out that despite the increased costs for dealing with the crisis, we remain committed to macroeconomic stability and fiscal consolidation in the medium term, all to the end of preserving the favorable conditions for accelerated economic growth.
It is also worth mentioning the Organic Budget law, being adopted within the implemented reforms and measures as regards the public finance, as a key reform in the budgeting process, with the bylaws being in preparatory stage, aimed at putting Integrated Financial Management Information System – IFMIS in place, which will provide for digitalization of the respective processes. Fiscal Sustainability and Economic Growth Support Plan, as well as Economic Growth Acceleration Plan were also adopted.