4th January 2024, Skopje – “2023 Budget was executed according to projections, reflecting an all-time high capital expenditure execution in terms of both figures and execution percentage as per the projections. Capital investments amounted to EUR 707 million, i.e. execution accounted for 97% of the projections. Budget deficit accounted for 4.67% of GDP, being lower compared to the projections (4.8%), with public debt accounting for 59.3%, being lower than the projections and the prescribed fiscal rules.”, Minister of Finance, Fatmir Besimi, said at today’s briefing, underlining that this is the first time, after 12 fiscal years running, of not having a supplementary budget.
“Total revenues performance accounted for 98.3%, whereas expenditure execution accounted for 98.1%. Capital expenditures or investments amounted to Denar 43.5 billion or EUR 707 million, i.e. their execution accounted for 97% of the projections, 4.9% of GDP, being by 52% higher compared to 2022,” the Minister pointed out, adding that this is a record high capital expenditure execution compared to the projections in the last 10 years.
What is important, as the Minister noted, is that the capital expenditure comprised a significant part of the budget structure. As announced in 2023, capital expenditures were executed at a level higher than the budget deficit which amounted to Denar 41.423 billion.
“We borrowed only to invest, proceeding further with the commitment to fiscal consolidation. Hence, the budget deficit accounted for 4.67% of GDP, lower than the projected one (4.8% of GDP). This trend has been on-going since 2020. 2020 budget deficit accounted for 8% of GDP (projected at 8.4%), it accounted for 5.4% of GDP in 2021 and 4.5% in 2022 (projected at 6.1% and 5.4% respectively). Such trend will continue in 2024 as well, with the budget deficit being projected at 3.4% and in line with the fiscal rules, considering that the 0.4% of the budget deficit is intended for implementation of anti-crisis measures.
Apart from increased funds intended for investments, he highlighted, more funds are also allocated for support of businesses and citizens – Denar 5.2 billion for companies, Denar 8.8 billion for agricultural subsidies, Denar 1.97 billion for education subsidies, Denar 874 million for cultural subsidies and Denar 185 million for sport subsidies. More funds are transferred to the local self-government units in the amount of Denar 27.7 billion.
The Minister also noted the support extended for crisis management and the one extended to businesses and citizens in the amount of Denar 5.5 billion.
“The key point was achieved. The Budget is executed within the projections, budget performance and expenditure execution are balanced, funding is secured at lower costs, capital expenditures are lower than the deficit,” the minister said, noting that such budget execution is a solid base for economic development in the following period.
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