Dimitrieska-Koçoska: Budget rebalance paves the way for more investment and more efficient implementation of capital projects

The Minister of Finance said on the “Where Is the Money” podcast that the 2026 budget rebalance has been designed to secure funds for the implementation of capital investments, the fulfillment of obligations arising from collective agreements, and support for development policies that directly affect citizens’ quality of life.

According to her, capital investments should not be treated simply as expenditures, but as an investment in the country’s future development and the improvement of living conditions. She underlined that these investments have a direct effect on economic growth, while also bringing long-term impacts on development and living standards.

“Capital investments directly affect gross domestic product, and after their implementation, they directly and indirectly affect the economy and the improvement of quality of life,” Dimitrieska-Koçoska stressed, adding that the decision to increase capital spending comes as a result of better project execution and the higher readiness of institutions to carry out planned activities.

“We came to the conclusion that in recent months, some ministers have been focused and committed to their work, and as a result of that we said — all right, let us have greater implementation,” the minister said.

Speaking about the increase in spending through the rebalance, she said the Ministry of Finance should not be guided only by figures, but also by the concrete needs of citizens and institutions.

“The Minister of Finance has the most difficult role, because if we want to look at things only from the aspect of what the budget deficit should be, we will say — yes, the minister firmly sticks to the figure, but on the other hand we have life and reality,” Dimitrieska-Koçoska stressed.

As for revenues, the minister said tax collection is proceeding according to expectations and that current indicators do not signal major deviations from projections.

“The increase in revenues from VAT and other taxes is above the level required to meet the annual projections. The data show that revenues are moving in line with the plan and there is no basis for claims that the budget is facing collection problems. I cannot say there are deviations. The math so far shows that taxes will be collected,” Dimitrieska-Koçoska stressed.

Regarding the budget deficit, she stressed that it should not be assessed through absolute figures, but according to its share in gross domestic product, because only in this way can real comparisons be made between different years and economic circumstances.

“That is precisely why percentages exist — so that comparisons can be made. We cannot compare something that is not comparable,” Dimitrieska-Koçoska stressed, recalling that in 2020 the country faced a budget deficit of 8% of GDP, while adding that fiscal consolidation has become more difficult due to inherited challenges and obligations.

Speaking about public debt, the minister said the Ministry of Finance is pursuing a prudent policy in managing public finances and that the confidence of international financial markets was demonstrated by the successful issuance of the eurobond, with the lowest historical margin.

“Precisely for that reason, when we issued the eurobond, we achieved the lowest margin so far, in historical terms,” the minister said.

In conclusion, Dimitrieska-Koçoska stressed that fiscal policy remains focused on preserving stability, while at the same time ensuring resources for development projects that will have long-term effects on the economy.