Skopje, 2 October 2024 (MIA) - The Government at its latest session adopted the 2025-2029 Fiscal Strategy and the 2025-2027 Public Debt Management Strategy with outlook to 2029, the Ministry of Finance said in a press release. 

According to the Finance Ministry, the documents are strategic and outline the medium-term fiscal policy plan.  

"Such medium-term planning allows greater predictability and transparency in the creation of policies. The objective of the fiscal policy in accordance with the adopted Strategy in the specified period is to improve macroeconomic stability and support economic activity. This will be achieved through gradual fiscal consolidation, improving the management of public finances and maintaining a high level of capital expenditures. In addition, support to the economy will continue with investments in infrastructure projects and redesigning the structure of public finances, which will be dominated by a high level of capital expenditures and strengthening transparency and accountability," Minister of Finance Gordana Dimitrieska Kochoska said, adding that a particular focus will be placed on reducing the informal economy and greater collection of revenues in the budget. 

In the medium term, the fiscal policy includes phased fiscal consolidation, while budget deficit is reduced as a percentage of GDP. Also, fiscal consolidation measures will be taken, with the aim of achieving a moderate level of indebtedness.

The adopted Public Debt Management Strategy in the medium term sets the framework for the Government's action towards prudent management of the public debt, while achieving the goals of the public debt management policy to finance the needs of the state with the lowest possible cost, identification for monitoring and management of risks and development and maintenance of an efficient domestic financial market.

The main goal of public debt management is to enable the needs and financial obligations of the state financing to be carried out with the lowest costs in the medium and long term, with an acceptable level of risk. In order to maintain the level of public debt within sustainable frameworks, without disrupting fiscal sustainability, the Strategy sets limits on the total public debt in the medium and long term. Thus, according to projections, it will eventually reach a level of 66.4% in 2024, and in the coming years it will gradually decrease as a result of gradual fiscal consolidation, to go below the established limit of 60% of GDP in 2029. Also, in order to reduce the risk of the amount of issued guarantees, a limit of issued guarantees is defined and emphasis is placed on projects that are self-sustaining and generate income, support economic growth and enable greater competitiveness of the domestic economy in the medium term.

The main goal of public debt management according to the Strategy is to enable the needs and financial obligations of the state financing to be carried out with the lowest costs. At the same time, one of the basic goals in the management of the public debt is to enable the development of the domestic market of government securities, which will create conditions for reducing the risk of debt refinancing, resilience to external shocks and ensuring long-term sustainability of the debt.

Photo: MIA archive