27th December 2023, Skopje – Today, Parliament of the Republic of North Macedonia adopted the supplemented 2024 Draft Budget, targeting priorities and adequately allocating funds in support of meeting public needs of citizens and companies. Total revenues in the 2024 Budget are projected in the amount of Denar 310.1 billion, being by 10% higher compared to 2023, while the expenditures are projected in the amount of Denar 343.6 billion, or by approximately 5.8% higher compared to 2023. Such projected revenues and expenditures result in a budget deficit of Denar 33.5 billion, accounting for 3.4% of the projected GDP, which is reduced by Denar 9.2 billion compared to 2023.
Minister of Finance, Fatmir Besimi, presenting the Draft Budget before the Parliament, highlighted that the policies within the 2024 Budget are in support of the response to the prolonged uncertainty, slowed down global economy and risks to our economy.
“Strategy on economic recovery, coupled with growth acceleration, is, first and foremost, based upon encouraging development via solid investment cycle, with the public sector as its cornerstone, major infrastructure projects, as well as stimulating the private sector development, to be supported via budget policies. Ensuring fiscal sustainability is also crucial, via continuous fiscal consolidation, while also providing for energy sustainability, as well as sustainability in the agriculture and the economy in general, by pursuing green economy concept,” the Minister pointed out in his exposé.
2024 Budget is the first budget construed on the fiscal rules envisaged under the Organic Budget Law, thereby ensuring pursuit of sound, predictable and sustainable fiscal policy aimed at reducing the budget deficit and the public debt, fostering the economic activity, as well as targeted support to both the most vulnerable categories of citizens and the businesses.
Changing the Budget structure is the key and accordingly, as of last year, capital expenditure are projected at a higher level, even higher compared to the budget deficit. Capital expenditures are projected in the amount of Denar 41.2 billion, intended for implementation of the already commenced infrastructure projects, i.e. investments in road, railway, energy and utilities infrastructure, as well as capital investments aimed at improving the conditions in the field of health, education and social system, agriculture, culture, sports, environment and judiciary.
Given the protracted uncertainty, EUR 60 million is also projected in the 2024 Budget for measures supporting both the most vulnerable categories of citizens and the businesses.
2024 Budget provides for regular and timely performance of all legal obligations, smooth implementation of electoral activities, support to the domestic economy, the private sector and the citizens, scaled-up and accelerated implementation of infrastructure projects, attracting foreign investments and encouraging innovations of the domestic companies, and so forth.
In 2024, economic growth is projected at 3.4%, with the inflation being forecasted at 3.6%.
