The item of public sector wages will increase by MKD 4.25 billion (EUR 69 million), an additional MKD 3.5 billion (EUR 56.8 million) will be allocated for pensions, another Mden 800 million (EUR 13 million) for agriculture subsidies, as well as more funds for the health and education sector, said Finance Minister Fatmir Besimi on Thursday.

Minister Besimi presented the projections stipulated by the decision on Budget reallocations that the Government adopted earlier today, which is to be forwarded to the Parliament.

Besimi said the decision is not Budget revision, since the revenues and expenditures are set to remain in the same amount until the end of 2023, whereas the budget deficit remains the same, at 4.2 percent of the GDP, thus “demonstrating the commitment for gradual fiscal consolidation”.

“The reallocation has been made from positions that have shown slower dynamics to positions related to increase of salaries and payment of the vacation bonus, increase of pensions, more funds for welfare, procurement of medications, subsidies for farmers, as well as the ninth set of anti-crisis measures that the Government will unveil soon. Adjustments have also been made in some of the capital projects, but none of them are stopped while following the golden rule in finances – borrowing only for investments and development goals,” said Besimi.

According to him, the reallocation aims to support citizens in further easing of price pressure.

“Furthermore, we are maintaining the budget’s development component through a higher level of planned capital investments in relation to the budget deficit. In addition, funds are reallocated for the support of domestic and foreign companies. The strategy is economic recovery and protection of the people’s standard, followed by an acceleration of growth,” underlined Besimi.