4th July 2026, Skopje - GDP growth and budget deficit figures provide the clearest indication of whether Budget funds are being allocated effectively," Minister of Finance, Gordana Dimitrieska-Kochoska said during today's parliamentary debate on the proposed modifications and amendments to the 2026 Budget, held within the Parliament’s Finances and Budget Committee.
"Stock of public debt stood at 49% in 2019. In 2020, budget deficit reached 8%, while public debt rose from 49% to 59.7%. Although that year is frequently referred to as the year of the COVID-19 crisis, the State Audit Office published data on the amount of funds provided as support to the business sector, how the remaining funds were allocated, and that those funds did not produce the desired effect on the economy. Furthermore, in 2020, GDP recorded a decline of 4.7%. In 2021, GDP grew by 4.5%, following a 4.7% contraction in 2020. While other economies recorded growth that exceeded their 2020 GDP drop, in 2021 we were unable to recover the economic contraction from 2020. At the same time, the budget deficit stood at 5.3%, while public debt increased to 60.3% in the same year. I can go on with the figures, in 2022, for example, the budget deficit accounted for 4.4%, while GDP growth stood at 2.8%. The statistical data show that average GDP growth over the period from 2017 to 2024, which stood at 1.8%, should be viewed in context, given that 2018 and 2019 were crisis-free years. Today, GDP growth is over 3%, thus illustrating whether public funds are being properly allocated.
"The general debate on the proposed 2026 Supplementary Budget began yesterday within the Financing and Budget Commission and may last for up to 10 days at the most.
When elaborating on the Supplementary Budget yesterday, Minister underlined that it responds to changing economic circumstances and serves as a Government’s tool for aligning the public finances with the real needs of the economy, the institutions, the business sector and the citizens. Particularly in times of global uncertainty, our duty is to act promptly, identify the risks and, at the same time, to seize the opportunities that lie ahead,” the Minister pointed out.
