Mickoski signals budget rebalance or reallocation as revenues fall

Prime Minister Hristijan Mickoski signalled that the Government is preparing either a formal rebalance of the state budget or internal reallocations, after recent global events pushed up energy prices and put pressure on public revenues.

With about three months left in the fiscal year, authorities still need to secure roughly two billion euros to reach the planned revenue target, while slightly more than 100 million euros of the projected deficit remain to be disbursed before year-end.

Fiscal gap and measures being weighed

"For us it represents a challenge because all of this and all measures have their own cost – as they say, there is no free lunch. So, we will most likely have to make another rebalance of the budget because just on the basis of excise, estimates are that roughly around five billion denars will be missing. If you add the value added tax rate, especially for diesel fuel which has been reduced, we come to a number of 7-8 billion denars that cannot be covered by reallocation and such a rebalance will have to be formally made," Prime Minister Mickoski said.

The opposition reacted strongly, arguing that the announced rebalance confirms shortages in the budget and that new borrowing will raise the country's obligations. "The state is taking on more debt. The bill is once again coming due. That is the economic policy of the bandit Mickoski. From hollow to empty. Just like diplomacy. The rebalance he announced for this month is an admission, not a victory: the budget is already shorter by 7 to 8 billion denars. Then he will patch the hole with a new plan and a new loan. The cheaper petrol is a cost the citizen pays twice," SDSM said.

If a rebalance is not adopted next week, the Government will have to seek room by reallocating funds already planned in the budget. The government's press service says there is currently no confirmation that the issue will appear on the next cabinet agenda. A final decision on whether to rebalance the budget formally or to cover the gap through reallocation is expected within days.

Photo: press material from the event