Skopje, 25 October 2024 (MIA) – Improving and maintaining macroeconomic stability, supporting economic activity and accelerating economic growth are the main goals of the new government’s fiscal policy. The process of stabilization has been kicked off after passing the revised 2024 budget and is to continue with disciplined budget spending, gradual fiscal consolidation, reducing the budget deficit and public debt all the while increasing the efficiency in revenue payment, it was concluded in the meetings of Finance Minister Gordana Dimitrieska-Kochoska with IMF Europe Director Alfred Kammer, IMF Executive Director Paul Hilbers, and Alternate Executive Director Luc Dresse, as well as Jeroen Clicq and Marnix van Rij, who are to stand in as the new IMF Executive Director and Alternate Executive Director, respectively.

“After coming to power, in the course of July we prepared a revised 2024 budget in order to secure stabilization of public finances and payment of the commitments regulated by law and the overdue commitments. Fiscal consolidation is a process that is enforced also in the revised budget by cutting unproductive expenditures. The process of disciplined budget spending will continue in the coming period, which will be reflected in cutting budget deficit and public debt. On the other hand, the budget’s revenues will be improved by increasing the efficiency in collection, especially as regards informal economy,” said the Finance Minister. 

Thus, she added, the fiscal rules for a budget deficit of 3 percent of the GDP and public debt up to 60 percent of the GDP will be met. 

“A fiscal strategy has been adopted and a trajectory has been defined for the budget deficit, as well as a strategy for public debt management, which will help the Finance Ministry’s efforts for prudent management with public debt to achieve a level below 60 percent until 2029. The drafting of the 2025 budget is in its final stages, which is expected to reduce budget deficit compared to this year’s revision and will not exceed 4 percent of the GDP,” stated Dimitrieska – Kochoska. 

She said that in addition to fiscal consolidation, stated the Finance Ministry, the government is strongly committed to reviving the economy by introducing a new concept based on investments. It will be supported through investments in infrastructural project, redesign of the structure of public finances to maintain a high level of capital expenses and to enhance transparency and accountability. Additionally, she said, economic activity will be supported also through an investment cycle of over 500 million euros by the private sector. 

The Minister stressed that tax reform will play a key role, which will be based on strengthening revenue payment mainly by curbing informal economy. 

In the meeting, it was noted that a key role in implementing the planned reforms will play the implementation of the new law on budgets and the bylaws that are in the works. They aim at implementing the best practices in planning and executing the budget. 

“The reforms will also be supported by the EU’s Growth Plan for the Western Balkans and the first tranche of 7 percent of the total sum, around 750 million euros, is expected by the end of the year. Also, recently, certain reforms have implemented in line with the IMP Precautionary and Liquidity Line (PLL) so as to maintain sound macroeconomic policies,” said the Finance Ministry’s press release. 

Minister Dimitrieska-Kochoska and National Bank Governor Anita Angelovska-Bezhoska in Washington are taking part in the annual IMF/WB meetings from October 21 until October 26. 

Photo: Finance Ministry