Skopje, 21 May 2022 (MIA) – The government is working responsibly and prudently and the budget revision is an adequate and timely financial plan of policies set to be implemented this year in order to complete the cycle of economic recovery, Finance Minister Fatmir Besimi said Saturday presenting a proposal on amending the 2022 budget, passed by the government yesterday. Even in a scenario of prolonged global energy and primary commodity crisis, the fiscal projection by the end of the year enables additional intervention to protect the citizens’ standards and companies’ liquidity. Under the budget revision, economic growth is projected at 3.2%, down 1.4 percentage points compared to the macroeconomic projections when the budget had been projected. The inflation rate is at 7.2%, considered intensification of the price hike compared to 2021. Deficit is planned at 42.7 billion denars, 5.3% of the GDP, which is an increase of 9.1 billion denars compared to the initial budget. The deficit and the payment of external and domestic debt, totaled at 54.5 billion denars, will be financed by taking loans on the international and the national market. Total revenues are planned at 245.8 billion denars, 2.9% up compared to the budget’s initial projections. The planned level of tax revenues is up five percent compared to the budget. Total planned expenditures are at 288.5 billion denars, up 5.9% compared to the initial 2022 projections. “Disruptions in global supply chains as a result of the pandemic proved to be longer contributing to price pressure on primary commodities, namely food and energy. The war in Ukraine added fuel to the fire. Additionally, the war brought fresh uncertainty in the outlooks of the global economy,” Minister Besimi said. According to him, the Macedonian economy will continue to recover in 2022 with slower tempo given the projections for the largest trade partners and the measures taken to protect and support citizens and businesses. Besimi stressed that the economy will return to a pre-crisis level in 2022. Salary payment expenditures are projected at 33.2 billion denars, including the new job control effects, public administration optimization, as well as the effect from aligning the pays of employees in institutions using taxpayers’ money with the minimum wage, said Besimi. Under the budget revision, current transfers are planned at 189.7 billion denars, nearly 19 billion denars up compared to the 2022 plan. “These are required funds for the economic measures to support the citizens and the economy,” stated the Minister. Moreover, additional 3.2 billion denars will be provided to subsidize farmers in order to stimulate yields and cushion price pressure on basic foodstuffs. Transfers to local self-government units will increase to increase pays for kindergarten and school staff starting from September 2022. Pensions will also rise. “In the medium term, despite the existing risks and insecurity, fiscal policy will go on toward further consolidation and restructuring of public expenditures with gradual decrease of the budgetary deficit and public debt, stimulating economic activity through capital expenditures and infrastructural investments as well as improving conditions for running businesses and job creation,” said Minister Besimi expressing hopes that the second half of 2022 will be marked by a more predictable global economic climate.