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The Ministry of Finance is firmly committed to its fiscal consolidation efforts as outlined in the Fiscal Strategy for 2025-2029. In 2024, the country achieved a budget deficit of 2.5 billion denars lower than anticipated after the budget rebalancing, bringing it down to 4.4% of GDP instead of the projected 4.9%. By the end of 2024, North Macedonia’s public debt was also less than projected, concluding the year at 61.9% of GDP. As of January 2025, following the successful repayment of Eurobonds issued in 2018, the debt figure dropped below 60% of GDP to 58.4%.
Finance Minister Gordana Dimitrieska-Kocokoska shared these insights at the opening of the EU Fiscal Management Conference, emphasizing the continued trend of fiscal consolidation with the 2025 budget. She highlighted that the roadmap for achieving this consolidation is defined by the Budget Law, which establishes essential fiscal rules.
Notably, Minister Dimitrieska-Kocokoska remarked that deviations from fiscal rules in 2024 stemmed from insufficient funds allocated to obligations undertaken by the previous government, as well as overdue and unpaid commitments that were managed through budget rebalancing.
In 2025, however, these deviations are aimed at fostering development and executing critical investments such as Corridors 8 and 10 (0.8% of GDP), local infrastructure projects (0.6% of GDP), and defense investments (0.5% of GDP). Furthermore, she underscored ongoing reforms in public finances, indicating that several subsidiary legal acts have been introduced alongside the Budget Law. The Fiscal Council is integral in implementing these reforms, maintaining continuous cooperation to ensure a strong fiscal framework. This independent body provides unbiased and professional analyses, contributing significantly to macroeconomic and fiscal policy development.
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