12th August 2024, Skopje – Amended 2024 Supplementary Budget, being discussed as of today at the plenary session in the Parliament, implies ensuring liquidity for servicing all liabilities by the end of the year. Funds, as the Minister of Finance said when elaborating on the amended Supplementary Budget, intended for increased pensions, payments on the basis of acquired workers’ rights and wage increase, settlement of arrears towards the business sector, all the while ensuring the normal functioning of institutions.
“2024 Supplementary Budget is an attempt of the new Government to ensure liquidity for regular servicing of all liabilities by the end of the year, at the same time allowing for normal functioning of institutions and implementation of the projects already in progress. With the Supplementary Budget, we are rectifying the failures in the initial Budget, such as insufficiently projected funds for exercising rights envisaged under the law, funds for servicing arrears and funds aimed at supporting the economy. It implies providing funds for regular payment of wages, which are to be adjusted in September per the Law, regular payment of pensions and fulfilling the promise we made in the pre-election period for linear increase of pensions in September, settling arrears and not delaying the process, since this is what the business sector needs, with Denar 6 billion being injected in the economy in addition to the announced favourable loan, by employing these funds in implementation of projects at local level, all being components of our efforts to underpin the economy, which, as data indicate, registered weak performance in the first half of this year”, Minister of Finance said.
Fiscal policy for the period up until the turn of this year will be aimed at restoring macroeconomic stability and supporting economic activity through gradual fiscal consolidation, public finance improvement and sustainable level of capital expenditures.
“The objective of this Supplementary Budget is, in a manner of speaking, to communicate the course of the fiscal policy in the coming period, to create budgets in the follow-up years comprising of priorities adding value, priorities generating the best value for the citizen’s money. Policies which will lead us forward and towards a better tomorrow. We are to thereby consider the need for fiscal consolidation, in order for the budget deficit and public debt to gradually decrease”, Dimitrieska-Kochoska indicated.
Total revenues are projected in the amount of Denar 318.2 billion, being higher by 2.6%, i.e. by around Denar 8 billion, compared to the initial 2024 projections. Total expenditures are projected in the amount of Denar 362.8 billion, being higher by 5.6%, i.e. by around Denar 19.2 billion, compared to the initial 2024 projections. The deficit, on the basis of the revised revenue and expenditure projections, is projected in the amount of Denar 44.7 billion, increasing from the initially projected 3.4% to 4.9% of GDP.
Under the Supplementary Budget, additional Denar 4.2 billion is provided for payment of wages, as well as Denar 5.1 billion for payment of pensions, Denar 800 million for payment of guaranteed minimum income, Denar 1.7 billion for health care, Denar 1 billion for TIDZ financial support, Denar 1.7 billion for agricultural subsidies, Denar 437 million for student meals and Denar 207 million for scholarships, Denar 300 million for block grants, additional Denar 0.8 billion for payment of interest to domestic and foreign creditors, Denar 5.1 billion for settlement of liabilities on the basis of issued guarantees which the enterprises are to repay to the state Budget successively by the end of 2024.
Denar 6 billion is also provided for local infrastructure projects, with capital expenditures amounting to Denar 44.7 billion, intended for investments in reconstruction and modernization of public health institutions, capital investments in the field of education, childcare and social protection, road, rail and utilities infrastructure, fulfillment of the agreements in the field of defense and security, as well as rural development.
Under the Supplementary Budget, economic growth is revised to 2.1% from the previously projected 3.4%, with the inflation rate forecasted at 3.5%.
The discussion upon the amended 2024 Supplementary Budget at the plenary session takes three days at the most.
