1st November 2022, Skopje – Budget savings and reallocations among budget users provided for additional Denar 3.75 billion (EUR 61 million) so as to cope with the energy crisis, i.e. funds for ESM, geared towards domestic energy generation, as well as overcoming the consequences of the energy crisis.
This, as Minister of Finance, Fatmir Besimi pointed out in the Parliament’s building, has been foreseen in the Draft Decision on Reallocation of Funds among the Central Government Budget Users and the Funds, being adopted by the Parliament today.
Thereunder, total of Denar 5.15 billion has been reallocated, provided on the basis of savings on non-priority items with lower execution than the projected one, as well as funds under the Programs, not being executed as per CAPEF mechanism.
“Reallocation is aimed at responding to the challenges of the ongoing energy and price crisis. Therefore, most of the reallocated funds amounting to Denar 3.75 billion are focused on the program for measures aimed at managing COVID-19 crisis, as well as other anti-crisis measure, i.e. they will be intended for ESM, i.e. electricity generation from the domestic capacities, thus providing for lower costs for the final consumers on the regulated market, i.e. households and around 70 thousand companies, as well as funds for new anti-crisis measures”, Minister said.
Under this Decision, as he added, additional funds have also been provided for the municipalities, environmental projects, and similar.
Additional Denar 291 million have been provided for the municipalities, via VAT grants. In other words, local governments will be extended additional 0.5% of the VAT collected last year. Funds, as per the latest amendments to the Law on Local Financing of Local Government, will be reallocated in two new additional parts, 0.25% for performance and 0.25% for equalization, i.e. funds aimed at enhancing the fiscal capacity and increasing the municipal revenues.
In addition, Denar 2.25 million have been provided for improvement of conditions in the penitentiary institutions, Denar 200 million for TIDZ as support to investments, as well construction activities, accompanied by additional funds under several subprograms, being intended for environmental protection, as well as Denar 60 million for measures geared towards eradicating and curbing the spread of African swine fever.
Denar 20 million has been provided for protecting Dojran Lake, i.e. the funds necessary for electricity, thus proving for smooth operations of the Dojran Lake hydro system.
As regards the savings, funds have been, among the other things, provided by cutting non-productive costs at several budget users, such as contractual services, purchasing vehicles, furniture, travel costs, and similar.
This is just a continuation of what has been undertaken by the Government since the onset of this crisis, with the reached decisions being based upon due diligence as regards the developments, as well as according to the indicated needs.
Denar 4.7 billion allocated under the 2022 Supplementary Budget, has been intended for coping with the energy crisis, whereby, as per the respective Decision, additional Denar 3.75 billion has been provided, which will be used for exiting the crisis with as less consequences as possible.
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