Skopje, 17 June 2025 (MIA) - The Parliament, as part of its plenary session on Tuesday, adopted the 2026-2030 Fiscal Strategy of the Republic of North Macedonia and the amendments to the Law on Urban Planning. MPs also ended the debate on amending the Electoral Code, and voting on amendments to the Law on Primary Education will also be announced at a later date. 

Deputy Minister of Finance Nikolche Jankulovski elaborated on the Fiscal Strategy, noting that the document contains medium-term goals of fiscal policy, basic macroeconomic projections, amounts for the main categories of estimated revenues and expenditures, as well as projections for the budget deficit and debt.

The 2026-2030 fiscal policy will be aimed at improving macroeconomic stability and supporting economic activity through gradual fiscal consolidation. A key objective will be to improve public finance management, as well as maintain a high level of capital expenditures that will support long-term economic priorities.

Key elements of fiscal policy in the coming medium-term period include fiscal consolidation and taking measures to ensure fiscal sustainability in the medium-term period, then discipline in the management of public funds, i.e. fiscal discipline, reducing gray economy and increasing the collection of funds in the state and municipal budgets. Supporting the economy will mean continued support for economic growth through investments in infrastructure projects, which will create conditions for business growth and job creation. Redesigning the structure of public finances, i.e. maintaining a high level of capital expenditures to achieve the planned economic growth.

One of the elements is enhanced transparency and accountability: Increased transparency and accountability in public finances, which will promote the efficiency of budget expenditures.

In the 2026-2030 period, tax policy will be aimed at ensuring sustainable economic growth and development, while ensuring legal certainty for taxpayers and regular collection of public revenues. According to the document, the goal is to reduce gray economy through increased digitalization and establish an efficient tax system so that everyone pays their tax obligations fairly. This will allow for the retention of low tax rates for other taxes, while at the same time a larger amount of funds for capital investments with about 5.2 percent of GDP, tax exemptions, subsidies and incentives for the operation of the domestic private sector and citizens.

The public debt management policy will focus on providing the necessary funds to finance the budget deficit, repay debts that fall due as a result of borrowing from previous years and for project financing, without causing an unjustified increase in debt to a level that could threaten the stability of the economy and the economic growth of the country. In addition, the budget deficit as a percentage of GDP is reduced from 4 percent in 2025, to 3.5 in 2026, 3 in 2027, 3 in 2028, 2.8 in 2029 and 2.8 percent in 2030. Also, the primary budget balance sees downward trend, from 2 percent of GDP in 2025 to 1.5 in 2026, 0.9 in 2027, 1 in 2028, 0.7 in 2029 and 0.6 percent in 2030.

Ruling and opposition lawmakers locked horns during Tuesday's 53rd plenary session debate over the Fiscal Strategy and the amendments to the Electoral Code. MPs concluded the general debate on amending the Electoral Code, and Parliament Vice-Speaker Antonio Miloshoski said the vote will be announced at a later date. The amendments are being introduced five months ahead of the next local elections.

The fast-tracked motion on amending the Electoral Code was submitted by the coordinators of the parliamentary groups from the ruling majority and the opposition SDSM, Bekim Qoku, Boban Karapejovski, Bojan Stojanoski, Gjorgjija Sajkoski, Nikola Micevski and Oliver Spasovski, while the European Front and the Levica party said they would not back the motion.

The majority believes that the amendments should be passed and that they provide space for independent candidates to run in the local elections, while the opposition accuses of the amendments being passed without the opposition being consulted.

Photo: Archive