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Kovachevski: Salaries far above average should be docked

Kovachevski: Salaries far above average should be docked
Skopje, 10 October 2022 (MIA)Prime Minister Dimitar Kovachevski says that where there are salaries far above the average, they should be reduced, as one of the ways to reduce costs, in accordance with the Fiscal Sustainability Plan that was adopted on Sunday by the Government for budget users. Responding to reporters’ questions, Kovachevski said on Monday that the goal of the fiscal set of measures is to free up financial resources for a better handling of the energy crisis by reducing expenditures and increasing revenues. With the measures adopted yesterday to alleviate the energy crisis and price pressures of EUR 350 million, the total package of anti-crisis measures amounts to EUR 750 million, which, Kovachevski stressed, is direct financial assistance for the most vulnerable categories of citizens, for the liquidity of small and medium-sized enterprises and tax reliefs which mean lower tax revenues for the state. - On the other hand, there are enterprises and institutions in which losses are created, and they should be covered by the Budget, and therefore we believe that the management teams of those enterprises should be at the highest level of responsibility and reduce expenses and increase income. One of the ways to reduce costs, where there are salaries that are far above the average, I think that in the conditions of such a crisis they should be reduced, while where the income does not correspond to what it should be, they should also do efforts to increase revenues, Kovachevski said, after the commissioning of GEN-I's solar power plant. With the Plan for Fiscal Sustainability and Support for Economic Growth, all budget beneficiaries are charged, and it is recommended that local self-government units and public enterprises and state-owned trading companies, within two weeks, submit a completed action plan for the consolidation of the expenses. The expenditure reduction policy includes Consolidation of expenditure on wages and benefits, through a 10 percent reduction compared to the planned funds for 2023. A fiscal effect is expected, i.e. a saving of about MKD three billion, in relation to the fiscal projections in the medium-term expenditure framework; Also, consolidation of expenditures for goods and services and their reduction by 20 percent in relation to the fiscal framework for 2023, with a fiscal effect also of about MKD three billion in relation to the fiscal projections in the medium-term framework of expenditures. Consolidation of expenses for subsidies, transfers, subsidies and social benefits and their reduction by 20 percent in relation to the fiscal framework for 2023 is also foreseen. And on that basis, the expected fiscal effect is about MKD three billion. dk/sk/