Skopje, 30 April 2026 (MIA) — Fiscal policy in the coming period will face a complex challenge in balancing the need for consolidation and the need for development, which will require careful management, strong institutions and the consistent application of fiscal rules, Minister of Finance Gordana Dimitrieska Kochoska said Thursday.

Addressing a Macedonian Academy of Sciences and Arts event organized by the Fiscal Council to discuss public finance management, Dimitrieska Kochoska spoke about the government’s fiscal strategy for 2027-31. She said the government was committed to responsible spending amid global economic risks and energy instability.

She said the 2027-31 strategy aimed to set a stable and predictable fiscal path, without disrupting economic activity and the social security of citizens.

The government's plan is to reduce the budget deficit over the next several years, starting from 3.5% of GDP in 2027, falling to 3% of GDP in 2028, and eventually dropping to 2.8% of GDP in 2029-31. The minister said these targets aligned the country with EU standards and strengthened the credibility of its fiscal policy.

To reach these goals, the government plans to increase revenue by cracking down on the informal economy and by improving tax collection, Dimitrieska Kochoska said. 

Regarding public spending, she said the government plans to cut "non-essential costs" and prioritize projects that drive economic growth. 

The finance minister also promised that wage and pension policies would be implemented to preserve their real value against inflation. In addition, she noted, the Law on Public Procurement would be strictly enforced to increase transparency and save public money.

Dimitrieska Kochoska highlighted that fiscal rules were more than technicalities. She said they were essential tools for ensuring stability. She praised the Fiscal Council, an independent body, for its role in "timely recognizing challenges and reinforcing fiscal discipline."

"Fiscal policy in the coming period will face a complex challenge in balancing the need for consolidation and the need for development," the finance minister said, adding that this would require "careful management, strong institutions and the consistent application of fiscal rules."

"I believe that through this kind of dialogue, through expert exchange of opinions and working together, we can build a more resilient, more stable and efficient public finance system."

The discussion, titled "The Efficiency of Public Finances and the Role of Fiscal Rules in North Macedonia" also covered capital expenditures, the efficiency of agricultural subsidies, public debt sustainability and the impact of fiscal rules on budget balances. mr/