Skopje, 14 November 2023 (MIA) – The Government of North Macedonia adopted the draft-budget for 2024 at a session Tuesday. It characterized it as a budget capable of supporting development while also ensuring fiscal sustainability. The expenditures are projected at Mden 343.6 billion, or 5.8 percent higher compared to 2023, while revenues are projected at Mden 310.1 billion or 10 percent higher than last year. The budget deficit is lower by Mden 9.2 billion compared to 2023, which according to the Government, will mean a reduction of borrowing by EUR 150 million.

The Government’s expectations are that the recovery of the domestic economy will accelerate by next year, with a projected growth of 3.4 percent. The growth is expected to be driven by gross investments, with an expected growth of 8.4 percent as a result of public investments, i.e., large infrastructural projects financed by the state, accompanied by measures for greater realization of capital investments.

The inflation rate is expected to stabilize in 2024, and is projected at 3.6 percent, in conditions of stable prices of energy and food on international markets, as well as a further slowdown of base inflation.

At a press conference Tuesday, Prime Minister Dimitar Kovachevski said the draft budget for 2024 is a response to the condition and needs of the Macedonian economy. He stressed it guarantees a regular payment of wages, pensions, and welfare, as well as meeting the other needs of the citizens and the obligations of the state.

“The budget for 2024 will be a pillar of economic recovery, and then acceleration of growth as well. It will ensure fiscal sustainability through further implementation of the process of fiscal consolidation. The budget will be a good foundation for increased and accelerated realization of infrastructure projects, attracting foreign investments, innovation by domestic companies, support for the domestic economy, private sector and the citizens, as well as an intensifying North Macedonia’s convergence with the EU. At the same time, it will enable regular and unobstructed realization of all legal obligations, including the obligations related to the country’s NATO membership,” said Kovachevski.

In his address, Finance Minister Fatmir Besimi said the budget was drafted at an exceptionally difficult time in the world, which makes it difficult to make predictions. The policies aiming to reduce inflation are resuming, while the sustainability of the budget, according to Besimi, is seen in the fact that the budget deficit continues to be reduced.

“The challenge was whether the growth would increase the deficit. Despite the growth, we are moving ahead with a deficit down by EUR 150 million,” said Besimi.

Photo: MIA