Macedonia is in a process of economic recovery, with a real GDP growth projected to 2.1% this year, 3.4% in 2024, and retuning back to 2% in 2026, states the IMF Mission preliminary report, which monitored the country from June 5 to June 9.
“The public finances are on a good path to achieve the deficit goal established in the 2023 Budget adopted by the Parliament. Yet, the delays in the adoption of the tax policies reforms and the solidarity tax, may compromise the tax revenues and endanger the primary expenses. In this context, the tax reforms must not be delayed anymore, considering the long period of public debate, which also refers to the solidarity tax. Additionally, the tax collection efforts must be improved”, Jacques Moniane, head of the Macedonia IMF Mission, stated on Tuesday.
Considering that the growth of expenses in the last few years decreased the households’ purchasing power, IMF assesses that it is understandable that the public sector employees demand higher salaries.
“There is already room in the Government’s Budget to adjust to a increase in the salaries to almost 10%, similar to the projected growth of the inflation for 2023, including the adjusted minimal salaries for this year. Anything above this would create a large and permanent burden to the Budget, also threatening to push all other essential expenses. A large increase in the salaries would also bring the risk of turning the temporary inflation in a constantly high inflation”, Moniane thinks.
Regarding the construction of the highway corridors 8/10d, IMF stated that the institution is still reviewing the implications over the public finances.