12th November 2024, Skopje – 2025-2029 Fiscal Strategy as the document presenting the assumptions and macroeconomic projections, as well as the fiscal policy guidelines for the current and the next five years, was adopted by the Parliament. Deputy Minister of Finance, Nikolche Jankulovski presented the Fiscal Strategy objectives.
“Fiscal policy to be pursued in the period 2025 – 2029 will be aimed at restoring macroeconomic stability and supporting economic activity through gradual fiscal consolidation, improving public finance management and maintaining high level of capital expenditures. Moreover, fiscal consolidation measures will be undertaken for the sake of attaining a moderate level of borrowing”, Jankulovski said.
He added that this Strategy incorporates the fiscal policy medium-term guidelines and objectives, baseline macroeconomic projections, amounts for main categories of projected revenues and expenditures, budget deficit and debt projections, budget expenditure threshold, as well as medium-term projections on local government and public enterprises, as well as state-owned joint-stock companies.
He thereby stressed that the expected results pertain to pursuing an active and accountable fiscal policy in support of economic growth, by attaining the numerical fiscal rules, disciplined budget consumption via efficient absorption of the funds and improvement of the operational performance by rendering better-quality public services and digitizing public sector services, further consolidation, optimization of public revenues and expenditures by gradual reduction of budget deficit and public debt, boosted economic activity by executing capital expenditures and making infrastructure investments in priority areas, in accordance with the government policies, which will generate positive effects on both the economic growth in the medium term and the maintenance of macroeconomic stability and fiscal sustainability, thus creating more favorable conditions for intensified economic activity.
“Gradual fiscal consolidation is foreseen under the Fiscal Strategy, with the budget deficit being reduced as a percentage share of GDP from 4.9% in 2024 to 2.8% in 2029. Thereby, fiscal policy will be focused on creating preconditions for a new cycle of economic growth, while also ensuring substantial public investments, which are the groundwork for improved economic perspectives, as well as higher quality of life for the citizens. Medium-term fiscal projections include a strong development component, with a significant share of capital expenditures with around 5% of GDP annually, being key elements of the public finances, Jankulovski pointed out.
Fiscal Strategy has been prepared on the basis of the 2024-2028 Fiscal Policy Statement, which the Government adopted in September 2024 pursuant to the Organic Budget Law.
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