The 2022 draft-budget is a response to challenges ahead, and is in the direction of realizing next year’s priorities, Finance Minister Fatmir Besimi told Friday’s plenary session debating the strategic document.
The global economic outlook for 2022, Besimi pointed out, is optimistic, and in terms of the Macedonian economy, the year is expected to end in line with the projected GDP growth of 4.1 percent, and with real possibility to exceed it. In 2022, economic growth is expected to speed up and amount to 4.6 percent amid increase of investments, increase of consumption and stabilized external demand. “2022 will be a year of economic recovery and growth acceleration through investments projected at a historically highest level in this draft-budget, and higher than the budget deficit for the first time. At the same time, amid still ongoing risks related to the COVID-19 pandemic, protection of population health is key, as well as regular payment of salaries, pensions, social benefits, and support to economy,” Besimi pointed out.
According to him, the amended draft-budget reflects the economic and social policies to be implemented by the government. In terms of capital investments, he mentioned the construction of Corridor 8 and Corridor 10 road infrastruct, improvement of conditions in education, green transition and modernization in agriculture.
“More simply put, we’ll have a “development budget” in 2022. The development component is visible through increased funds for capital expenditures by around 28.3 percent compared to 2021, i.e. Mden 8.4 billion more for capital projects in 2022,” Besimi said, adding that the budget is in compliance with the so-called “golden rule” in public finance, i.e. for the first time capital expenditures exceed budget deficit.
Total expenditures in the draft-budget are planned at Mden 272.4 billion, i.e. 35.2 percent of GDP, and the total revenues are planned at a level of Mden 238.9 billion, i.e. 30.9 percent of GDP. The deficit is projected at Mden 33.5 billion, i.e. 4.3 percent of GDP, and capital investments will amount to Mden 38.2 billion.
The Minister announced accountability and transparency in budgeting, and in support of the budget, several strategic documents with a medium-term framework have been adopted, including the Fiscal Strategy, the Public Debt Strategy, the Accelerated Economic Growth Plan, the Public Investment Plan, etc. The draft-budget incorporates 23 amendments worth total Mden 382 million, of which, according to Besimi, most are from the opposition.
According to the opposition, the draft-budget of 4.4 EUR billion is the largest budget ever, unrealistic and undeveloped. The opposition says that no money has been provided for the energy crisis, and the projected budget deficit was high. The projections for capital investments, they believe, are false considering that their realization in the past years is small. The draft-budget should be passed in Parliament by December 31 at the latest.
Source: MIA
