10th December 2024, Skopje – 2025 Budget is a document, demonstrating the changes the Government makes as regards the policies aimed at carrying out fiscal consolidation, ensuring fiscal sustainability, and supporting economic growth. 2025 will be marked by scaled-up investments. These investments will both produce value added and serve as a driving force, thus taking us a step forward in attaining higher economic growth rates. They also provide for creating the right conditions for building a better future, which will also have a significant positive impact on the economic activity next year. This was pointed out by Minister of Finance, Gordana Dimitrieska-Kochoska, when elaborating on the amended 2025 draft Budget at the Parliament’s plenary session.
“Government’s new concept is based upon actual implementation of a solid investment cycle in the public sector, coupled by investments in both the private sector and the municipalities. In addition to these investments, the launched fiscal consolidation, underpinned by a series of significant measures focused thereon, will bear the stamp of the year. Actions will be taken on the revenue side for the sake of more efficient revenue collection, which will not imply any new tax burdens, but the emphasis will be rather placed on combatting informal economy, along with the fight against corruption and crime, in particular the financial crime. Actions should be taken to make improvements in plenty of areas, however, we hold a strong potential, which we will harness in accomplishing this goal. “We have a plan and a capacity to make this happen. Strong determination is needed, as demonstrated by this Government,” the Minister said. She also added that since taking office, the economy has been heading in the right direction, and next year, economic activity is expected to pick up, with the growth being projected at 3.7%.
2025 Budget is development-oriented, while incorporating a social component as well. Total revenues are projected in the amount of Denar 358.8 billion, expenditures are projected in the amount of Denar 400.2 billion, with the budget deficit being projected in the amount of Denar 41.3 billion or 4% of the projected GDP. Thereby, what makes this Budget particularly distinct is the upward trend of expenditures being lower than the one of revenues. In other words, as per this Budget’s projections, revenues are higher by 13% with expenditures picking up by 10% compared to 2024, thus contributing to fiscal consolidation and budget deficit reduction by around Denar 3.3. billion.
By highlighting the development component as the most significant feature of the 2025 Budget, she pointed out that the capital expenditures are projected in the amount of Denar 47.2 billion or with around 4.6% share in GDP on annual basis.
“Thus, next year’s fiscal policy will be focused on creating preconditions for a new cycle of economic growth, as well as substantial public investments, being the groundwork for improved economic prospects, as well as better quality of life for the citizens. In addition to the considerable capital investments projected under the Budget, substantial funds have also been provided under loans extended by international financial institutions and bilateral creditors”, Minister said, adding that in 2025, the Government will keep providing financial assistance to the municipalities, while also maintaining the cooperation therewith.
In 2025, as per the draft Budget, investments are projected in the field of road infrastructure, pertaining to project design and construction of part of Corridors 8 and 10d, construction of the eastern part of Road Corridor 8, Rankovce – Kriva Palanka section, construction of Kichevo – Bukojchani motorway section, construction of Skopje-Blace motorway section, followed by the implementation of Local Roads Connectivity Project, funded by the World Bank, construction of Gradsko-Drenovo road section, as part of the road along Corridor 10d, construction and rehabilitation of the eastern part of Rail Corridor 8, as well as construction of a joint railway border crossing with the Republic of Serbia. Projects have also been planned in the field of utilities infrastructure and waste management, energy efficiency in the public sector, coupled by investments in the following sectors: health, education, childcare, sports, agriculture, energy infrastructure, along with the reconstruction of penitentiary institutions, which will be financed with both domestic and foreign loans as Minister stressed. She thereby also mentioned the announced second Hungarian Loan Facility, amounting to EUR 500 million, to be used for repaying the Eurobond falling due in January 2025, whereby the remaining portion thereof will be financed with domestic borrowing.
As per the Rules of Procedure of the Parliament, the debate upon the amended draft Budget, at a plenary session, lasts for five days at the most.
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