Skopje, 25 July 2024 (MIA) - The Budget revision is on the agenda of the Parliamentary Finances and Budget Committee session on Thursday. The session of the Committee is scheduled at 11 am. 

Total revenues in the budget are planned at 318 billion 150 million denars, up by 8.22 billion, while expenditures are planned at 362 billion 816 million denars, an increase of 19,178 billion denars. 

GDP growth has been revised from 3.4 percent to 2.1 percent, while inflation is projected at a level of 3.5 percent. A slowdown in the growth of inflation is expected in H2 of 2024, i.e. stabilization of food and energy prices, as well as more moderate pressure from basic inflation.

According to Minister of Finance Gordana Dimitrieska Kochoska, the changes to the Budget are aimed at revising the initial fiscal projections in accordance with the macroeconomic trends in H1 of 2024, restructuring budget expenditures to service the most priority obligations, as well as optimizing the sources of financing the budget deficit.

At a news conference on July 17, the Finance Minister presented more details on the Budget revision. 

She noted that the Budget revision secures 4.1 billion denars for salaries, including 1.1 billion for block grants that weren’t planned in the main budget, 5 billion denars for pensions, 600 million denars for payments in line with court decisions, 1 billion denars for the payment of legal financial assistance in the zones, which has not been provided, 322 million denars for the State Election Commission which have not been planned for payment to the media according to the Electoral Code, 644 million denars for student meal and for scholarships, etc.

Last week, the Government adopted the Budget revision, including several conclusions, according to which Budget beneficiaries are required to take into account the approved Budget funds and not to undertake obligations regarding which they have not secured funds in the Budget for the current year and the determined maximum amounts of expenditures in the medium term when concluding collective agreements. Public enterprises and state-owned joint-stock companies should request an opinion from the Ministry of Finance when concluding collective agreements. During the implementation of the Budget, the budget users should not undertake obligations beyond the funds provided by the Budget for the corresponding fiscal year.

Health Minister Arben Taravari also said it would not be possible to give pay raises to healthcare workers and to sign a new collective agreement as requested by the trade unions by the end of the year.

Due to the huge budget deficit, he added, it’s impossible to secure pay raises and I ask the unions for understanding.

“I hope the healthcare budget will not be cut significantly, because we have to survive. I met once with the trade union and I intend to meet them again and ask for understanding for a possible agreement next year. This year it is almost impossible to sign a new collective agreement,” Taravari told reporters after visiting the September 8 City General Hospital in Skopje. 

Minister of Education and Science, Vesna Janevska, said in an interview with Telma TV that a collective agreement will be signed once conditions are created for it.

"I am a professor, I want professors to have high wages, but I also want the minimum wage to be higher. If the economy cannot withstand that, I believe it was pure political populism that brought us into an even more difficult situation. I will not lie to my teachers, the teachers of the Ministry of Education, the teachers of this country. Once the conditions are created, and I am sure they will be created by the end of the mandate, hopefully sooner, the collective agreement will be signed, and they will receive their salary according to the collective agreement," Janevska told Telma TV. 

The Union of workers in administration, judiciary and civic associations (UPOZ) has responded to the Government conclusion that requires budget beneficiaries to consider approved funds when concluding collective agreements, while public enterprises and state-owned shareholders association to ask for an opinion from the Ministry of Finance. 

"Someone is again attempting to limit negotiations and signing of collective agreements! As if past lessons have not been learned. Is the suspension of collective agreements on the horizon? As per the Government conclusion, the Finance Minister will again decide who can and who cannot conclude a collective agreement. Is this the way to build social dialogue?," UPOZ wrote in a Facebook post.

After the Parlaiment's Finances and Budget Committee approves the Budget revision, it should be put on the agenda of a plenary session. 

The Federation of Trade Unions of Macedonia (SSM) demands minimum wage at EUR 450 in the first 100 days of the new government. 

Finance Minister Dimitrieska Kochoska says plans for salary corrections in the administration due to inflation will be realized, but the situation should be checked first for other pay rises.

"In parallel this will show what will be done with the minimum wage," said the Minister. 

Photo: MIA archive