At today’s session, Government of the Republic of Macedonia adopted 2010 Draft Supplementary Budget. Total adjustment of expenditures with revenues amounts to 4 billion 700 million denars, or expenditures and revenues were cut by 3.2%. Budget deficit remains within the initially projected 2.5% of GDP.
 
Expenditures were cut in all sectors. Most of the savings refer to the categories of goods and services, including travel expenditures, contracting services and other categories of non-productive costs. Core Budget was cut by 5.8% or by Denar 1 billion. Second major adjustment was in the category of capital investments, i.e. cuts in the amount of 5 billion 220 million denars were made.
 
– We have tried not to stop the implementation of any project, however, there will be significant cuts as regards the projects, for which such possibility exists, according to the so-far project realization – Vice Prime Minister and Minister of Finance, Zoran Stavreski said at today’s press conference.
 
As Vice Prime Minister said, one of the main goals of the Supplementary Budget was also to protect all vulnerable categories of citizens from the effects of the European crisis, thus ensuring more funds for health and social assistance.
 
Thus, Denar 3.5 billion was re-allocated from the budget, one billion 120 million denars out of which is allocated to the health sector, i.e. for increasing the budgets of hospitals, health provider institutions and the Health Insurance Fund. Transfers to the Pension and Disability Insurance Fund were also increased by Denar 450 million, and funds for social assistance were increased by the same amount.
 
Proposed Supplementary Budget also includes additional Denar 700 million for salaries of teachers, in line with the signed collective agreement by both the Minister of Education and the Union. Supplementary Budget also includes harmonization of the wage bill with several decisions of the Constitutional Court as regards the inclusion of years of services, calculated in the salary, as well as the decision for retirement of Ministry of Interior employees.
 
Supplementary Budget includes neither proposals for increasing taxes, nor proposals for reducing salaries and pensions in the Republic of Macedonia.
 
– Unlike many other European countries, where such measures were necessary, our estimate is that Republic of Macedonia does not have any reason to do so, and thus the Supplementary Budget is set on such bases – Vice Prime Minister Stvareski said.
