Hristijan Mickoski: Possible another budget rebalance as government expects 6–7 billion shortfall
Mickoski: Inflation is under control and low fuel prices will cost the budget, so another rebalance is possible.
Prime Minister Hristijan Mickoski said the government expects a 6–7 billion shortfall by the end of the year and that an additional budget rebalance is possible, following the inauguration of the renovated student dormitory "Steve Naumov" in Skopje.
Inflation under control, fuel policy strains the budget
Answering reporters, Mickoski defended the government's approach to price stability and fuel subsidies, arguing that recent months show limited inflationary pressure.
"I wouldn't say that inflation here has gathered momentum; for two months in a row it has, conditionally speaking, been controlled and is below the European average. We'll see how September turns out. Anything between 2 and 3 percent is within the expected range. A serious challenge is the uncertainty regarding the supply of oil and oil derivatives worldwide, stock exchange prices and the measures we are implementing as a Government to keep fuel prices low — the lowest in Europe — and that will cost us as a budget, just based on excise, nearly five billion denars, and due to reduced VAT, another billion or so. That is why the possibility of another rebalance is being considered, but our priority is to maintain citizens' living standards, to keep the low level of inflation under control and to keep the lowest fuel price not only in the region but in Europe. We expect to be short by 6–7 billion by the end of the year and therefore it is possible that until then we will have another budget rebalance," Mickoski stressed.
He quantified the direct fiscal impact of the policy on fuel prices, saying excise revenue losses alone amount to nearly five billion denars, with additional billions lost through lower VAT receipts.
The prime minister framed a further rebalance as a contingency measure: preserving citizens' purchasing power and maintaining low inflation and fuel prices remain government priorities, even if that requires adjustments to planned spending before year-end.
Photo: press material from the event
