Gordana Dimitrieska Kocoska: Measures squeeze state revenues, another budget rebalance possible

The government is monitoring state revenues closely after a set of unplanned anti-price measures introduced following the escalation in the Middle East, and Finance Minister Gordana Dimitrieska Kocoska said another budget rebalance or a reallocation of funds is possible.

According to the minister, the measures were not included in the most recent rebalance and their fiscal effect is putting pressure on projected receipts — especially on excise-related revenue, which is already underperforming.

"These situations were not planned in the budget rebalance and when we prepared the rebalance the conditions were calmer and we did not expect that it could go again in this direction. We are reviewing the financial situation, and we will decide whether we will only reallocate or go with a budget rebalance," Dimitrieska Kocoska said.

Short-term steps and revenue monitoring

The government has so far resisted new borrowing and says no additional price-control measures are planned at this stage, but officials will track whether revenues are collected according to plan before making further moves. The finance ministry will use multiple parameters, including excise receipts, to judge if a fresh overhaul of the state budget is needed.

"At the moment we are not discussing anything else; we are watching developments, you can see that we cut the VAT for diesel, we will decide after two weeks, we are monitoring developments and will make decisions based on that," Dimitrieska Kocoska added.

Recent measures included a VAT cut applied only to diesel and an earlier reduction of excise on fuels. With the new regulatory calculation, gasoline prices rose by 3.5 denars: 98 octane will cost 102.5 denars per litre, and 95 octane 100.5 denars per litre from midnight. Diesel fell by 2 denars to a new price of 99 denars per litre. At the same time, gas and electricity prices are also on the rise.

Photo: press material from the event