Opposition: Second budget rebalance creates new debt, not higher living standards

Opposition parties said the government's second budget rebalance is effectively an admission of mismanagement and leaves the public finances weakened, with a reported shortfall of €900 million that raises immediate questions about how salaries and pensions will be paid in the coming months. They warn that cuts to capital investments open the door to fresh borrowing.

Political clash over priorities and spending

"What does this rebalance represent as an act, as a deed, when it does not bring a better standard for citizens? There is no money for higher wages, no fiscal stabilization, no capital investments; on the contrary, they are being cut. This is a rebalance that creates borrowing for consumption, i.e., with which the holes in the Budget will be filled," said Venko Filipche, president of SDSM.

Opposition MPs noted that a July rebalance had raised the deficit with the justification that funds would be directed to capital projects, yet those projects are now being reduced while the higher deficit remains. In their amendments they asked for a higher minimum wage, more funds for youth programmes, increased student meal support and agricultural assistance. The amendment on the minimum wage was rejected on the grounds that the wage is already being increased.

"Increasing wages is necessary because of the continuous rise in the cost of living and the price increases of food, energy, transport and other basic needs, which especially affect citizens with the lowest incomes," said Fatmir Bitici, an MP from SDSM.

Deputy Finance Minister Nikolche Yankulovski responded that the rebalance secures the funds required by labour rights and that if changes occur the ministry will act at that time. Government MPs urged that the public should not be misled, stressing that the minimum wage is rising in accordance with the law.

"There cannot be greater inflation than the rise of that minimum wage. A worker who receives the minimum wage cannot be poorer in the current year than in the previous year in which he worked. In this way, workers are protected," said Ljupcho Prendzhov, an MP from VMRO-DPMNE.

MPs from Levica sought to keep support for small business start-ups, and were told that the support will remain but will be routed through a different institution. Their amendment to preserve army funding — reduced from €2,600,000 to €200,000 under the rebalance — was rejected.

"The soldiers live in undignified conditions, they do not have boots, plaster is falling from the ceilings onto their heads, they sleep in barracks with dampness, and we allocate 750 million euros for NATO. We build roofs, plaster facades, but we have no foundation," said Borislav Krmov, an MP from Levica. Deputy Minister Yankulovski replied: "The funds from which the reduction is proposed are not intended for already undertaken obligations related to maintaining and improving the current level of combat readiness of the ARM. The planned funds for reconstruction are aligned according to the timeline for the realization of planned activities until the end of the year."

Lawmakers filed a total of 124 amendments against the rebalance, reflecting broad parliamentary disagreement over priorities, deficit management and the balance between current spending and investment.

Photo: press material from the event