Dimitrieska‑Kochoska signals possible second rebalance as economists warn budget room is nearly exhausted
Minister says analyses continue; economists warn that limited budget room and volatile energy prices make a second rebalance difficult.
Minister of Finance Gordana Dimitrieska-Kochoska said analyses are under way to determine whether a second budget rebalance will be needed before year-end, but economists warn that the manoeuvring space in the budget is almost exhausted. ([finance.gov.mk](https://finance.gov.mk/mk-MK/odnosi-so-javnost/novosti/dimitrieska-kocoska-ja-prezede-funkcijata-minister-za-finansii?utm_source=openai))
“In a crisis it is very difficult to consolidate because you will have to take measures, you need to keep the economy alive but in the medium term we must begin systematic management of the economy that will not create such public debt and will enable capital expenditures and other priority revenues to provide higher revenues,” Borche Trenovski, a university professor, told Telma.
Trenovski stresses that improving the efficiency of both revenue collection and spending is long overdue. “You see that for years the Public Revenue Office has reported calculated but uncollected revenues; they are in huge amounts. Furthermore, we have a decline in the informal economy which is extremely important for the revenue side, which remain uncollected,” he added.
Limited fiscal room and external risks
Economists say it is hard to predict whether a deeper energy shock will materialise because the situation changes daily. The government’s options are constrained: a new rebalance or reallocation of funds would mean foregoing some planned measures or raising debt, both politically and economically costly.
The report notes that overall revenues are being collected broadly according to plan, with only small shortfalls in excise receipts; observed data through July indicate excise collections are coming in with better dynamics than last year, when no measures were in place. At the same time, global energy markets remain volatile: oil was reported above $100 per barrel and electricity and gas prices are showing sharp movements.
Analysts warn that if the Middle East conflict and the related geopolitical tension persist, domestic public debt and the budget deficit could grow, further squeezing the room for fiscal manoeuvre and forcing difficult trade-offs before the end of the year.
Photo: press material from the event
