26th September 2023, Skopje – 2023 – Decision on Reallocation of Funds among the Central Government Budget Users and the Funds, projecting funds geared towards higher wages of public sector employees by 10%, higher pensions, payment of vacation allowance (K15) amounting to Denar 10,000, as well as increased funds for social assistance and support of vulnerable categories, agricultural subsides, the ninth set of anti-crisis measures in support of the vulnerable categories and the companies, has been put on the agenda before the Financing and Budget Commission as of today. Under the draft Decision, funds are also provided for the drug “Trikafta”, as well as for purchase of digital sensors for monitoring diabetes.
“Reallocations under the Decision are in support of the social aspect, i.e. funds are primarily destined for supporting the citizens and their living standard – 10% higher government wages, and payment of vacation allowance (K15) in line with the provisions under the General Collective Agreement for the public sector employees, increased pensions by around 6% as per the reached systemic solution, increased funds for social transfers, agricultural subsidies, support for domestic and foreign companies, as well as funds projected for the ninth set of anti-crisis measures. We aim for supporting the citizens, in order to ease the price pressures as much as possible, while also keeping the Budget development component, with the projected capital investments being higher than the budget deficit. Thus, we keep applying the strategy for economic recovery, above all by safeguarding the living standard of the citizens, also coupled by the acceleration of the economic growth, Minister Besimi said.
He went on that the required adjustments to the Budget, have been made by reallocations from the items showing underperformance to those items in need of additional funds as per the set priorities and the assumed legal obligations.
“Thus, all planned capital projects are to be implemented, and that the capital expenditures remain at a level higher than the budget deficit, i.e. as per the golden rule of government spending – to make borrowing only for investments and development purposes. This Decision provides for additional funds for the set priority needs, whereby the budget deficit remained the same in nominal terms, thus speaking in favor of our commitment to gradual fiscal consolidation”, Minister of Finance stressed when elaborating on the draft Decision.
Minister stated that under the Decision, Denar 18.2 billion are reallocated, provided on the basis of savings from less executed expenditures at certain budget users, as well as with the funds additionally provided via the CAPEF mechanism. Funds are also provided via the higher revenue collection on the basis of contributions.
Funds provided under the Decision amount to Denar 4.25 billion, aimed at increasing the public sector wages by 10% as of this month and paying vacation allowance in the amount of Denar 10,000, Denar 3.5 billion for increasing pensions by around 6% for 336 thousand pensioners starting September 2023, Denar 1.81 billion as state aid for companies such as: Denar 581 million for domestic companies, Denar 200 million for foreign companies and Denar 200 million for companies and infrastructure landscaping in TIDZ, Denar 800 million is intended for agricultural subsidies, mostly for milk subsidies, cattle raising, as well as advance financing of farmers for plant breeding and cattle raising, Denar 650 million for “myVAT” payment for the third quarter due to the increased refund threshold, Denar 600 million as payment of social rights for 36,000 beneficiaries of guaranteed minimum income, Denar 290 million as payment of student meal for 29,000 beneficiaries, scholarships for 6,900 students and 9,600 pupils, Denar 200 million as regular maternity leave payments, Denar 166 million for translation, printing and purchase of textbooks for primary and secondary education, Denar 110 million for coping with the African plague, Denar 100 million for the purchase of the drug “Trikafta” for 55 patients, as well as Denar 20 million for purchase of digital sensors for monitoring diabetes.
Under the Decision, Denar 4.55 billion is also allocated under the P1 Program, as funds destined for the anti-crisis measures aimed at dealing with the crisis.