Filipçe: The budget is short by 900 million euros

LSDM leader Venko Filipçe said that the second budget revision within a year demonstrates, in his view, the government’s poor management of public finances and the economy. He warned that the budget is short by 900 million euros.

Filipçe said the budget situation is alarming and that, in addition to the 900 million euro shortfall, the Pension and Disability Insurance Fund is also short by one billion euros to pay pensions. According to him, budget stability is seriously at risk, and it remains unclear where the money for salaries and pensions will come from before the New Year or early next year.

He noted that while other countries have begun discussions on their 2027 budgets, North Macedonia is preparing a second revision within the same year. Filipçe said that once this process is complete, discussions on next year’s budget will begin.

At a press conference today, the LSDM leader said the revised budget provides for no salary increases or improvement in living standards, but instead cuts to capital investment and the possibility of new borrowing. He recalled that the July revision increased the deficit on the grounds that the money would be used for capital investment, which is now being cut, while the higher deficit remains.

According to Filipçe, poor planning is also reflected in revenue projections, which the government is lowering even as public debt continues to rise.

He said that in July the government raised its revenue projection to 379.5 billion denars, but is now lowering it by 5.3 billion denars to around 374 billion denars. Filipçe described this as evidence of a serious revenue shortfall and a lack of institutional capacity. According to him, public debt will reach 12 billion euros, including the liabilities of public enterprises, primarily those of the Public Enterprise “State Roads.” He added that debt has increased by around 4 billion euros over the past two and a half years.