11th December 2023, Skopje – 2024 Budget, being adopted amid protracted uncertainty and slowed down global economy, is part of the broad strategy in support of both recovery and growth acceleration, Fatmi Besimi pointed out in an interview for “Faktor”, thereby underlining that this strategy is based upon encouraging development via solid investment cycle, as well as by ensuring fiscal sustainability.
Minister of Finance pointed out that next year’s Budget is designed on the basis of the “golden rule” of government spending, as per which capital investments should be higher than the fiscal deficit. At the same time, the Budget stays on the set path of fiscal consolidation, i.e. reduced budget deficit, without thereby adversely affecting the economic growth.
“Budget structure is changing. As of last year, capital expenditures increased by twice compared to 2020, whereby this tendency will be pursued under the 2024 Budget as well. Budget deficit is reduced by almost one third compared to this year’s projections, accounting for 3.4% of GDP, being only half of the primary deficit, i.e. 1.7% of GDP, while the other half thereof will be used for paying the interests on the debts accumulated from the previous years. This is in line with medium-term projections under 2024-2028 Fiscal Strategy, i.e. budget deficit is forecasted to reduce to 3% in 2025 and 2026, as per the Maastricht Criteria, which is to be reduced to below 3% in 2027 and 2028, i.e. from 2.8% to 2.5%, respectively.
Support is projected for economic sustainability, as part of the funds allocated for capital expenditures. Adoption of the new Organic Budget Law provides for strengthening the control over fiscal sustainability by establishing the Fiscal Council and introducing the fiscal rules”, Minister stated.
In his interview, Minister of Finance tackled the ninth package of anti-crisis measures, as per which, support will be provided to 120,000 young people, around 74,000 socially vulnerable categories of citizens, 187,000 pensioners, 40,000 farmers, 540,000 users of “MyVAT” application, 600,000 households, as well as 70,000 companies, whereby, if one considers the systemic measures, the total number covers 338,000 retirees and 106,000 public sector employees.
“Ninth package of anti-crisis measures was announced under the 2023 Budget. Hence, the theories for this Budget being pre-electoral and precipitate, are invalidated. The fiscal policy and this package of anti-crisis measures are geared towards supporting the economic growth, as well as the vulnerable categories of citizens. Support will also be extended to students, pupils from low-income families, retirees with lower pensions, while liquidity is to be injected into the companies, mostly small and medium-sized ones”, Besimi said, thereby adding that this support has been continuously provided to the citizens and the business sector since the pandemic onwards, being estimated at EUR 2.66 billion.
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