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North Macedonia’s Finance Minister Gordana Dimitrieska-Kochoska has reaffirmed the government’s commitment to fiscal consolidation, citing significant progress in public debt reduction and budget deficit control.
In a televised interview on the current affairs program 360 Degrees, the Minister emphasized that the fiscal consolidation strategy remains a top priority and will not deviate from the outlined Fiscal Strategy. According to Dimitrieska-Kochoska, the country has reached the peak of public debt levels and is now on a definitive trajectory toward reduction.
“In Q1 2025, public debt is at its lowest point in the past five years. For the first time since 2018, it has decreased compared to the end of the previous year,” she said.
The budget deficit decreased from 4.4% of GDP in 2024 to 4% this year. The public debt was reduced by €36 million in Q1 alone, underscoring what Dimitrieska-Kochoska described as a “careful and responsible” approach to budgeting.
Rejecting the fiscal practices of her predecessors, she criticized the pattern of early-year borrowing that led to sustained high interest burdens on the public.
“I could have borrowed €300-400 million to ensure liquidity and peace of mind for the year, but that would result in 7% interest payments each month a cost borne by the taxpayers. This Ministry will not allow that.”
She stressed that borrowing is only justifiable if it brings measurable value to the economy. The government is now prioritizing strategic, project-based financing aligned with long-term growth.
The remarks come amid broader efforts by North Macedonia to balance economic reform with debt sustainability, following increasing scrutiny from international observers and rating agencies.
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