Finance Minister Nina Angelovska outlined three scenarios for the coming economic crisis. Even under the most favorable scenario the budget would see a projected revenue shortfall of 20 percent, or a deficit of 700 million EUR, Angelovska said. This is caused by the quarantine and curfew ordered because of the coronavirus epidemic, which is felt throughout the economy.
Under the less favorable scenarios, Macedonia could face far more serious economic fallout – with shortfalls of a billion or 1.3 billion EUR from the budget that was projected at a little below 4 billion EUR.
In all scenarios we expect the brunt of the revenue shortfall of between 40 and 65 percent to occur in the second quarter of the year. Our projections for the third and fourth quarter vary, depending on when we can expect to see the economy stabilize and begin to heal. It is important that we are prepared for the worst case scenario and make the appropriate steps. Angelovska said.
The Government presented a modest stimulus package yesterday, and dropped a major cost cutting proposal put forward by SDSM party leader Zoran Zaev, who asked that the entire public sector is reduced to the minimum wage for two months.