Tevdovski: Budget rebalance will not affect the construction of the Skopje-Blace highway

A draft budget rebalance for 2018, adopted at yesterday’s government session, revises the GDP growth to 2.8 percent, maintains the deficit at 2.7% and cuts expenditures and revenues for 0.5%.

The rebalance aims to revise the expenditures, which will provide financial support for municipalities and the health insurance (FZOM), pension (PIOM) funds and the employment agency (AVRM), Finance Minister Dragan Tevdovski told a press conference on Sunday.

The GDP growth projection is first and foremost revised to 2.8 percent because of the opposition party’s blockade of Macedonia’s accession to NATO and the EU, and this state on uncertainty may have negative effect on the economy, Tevdovski said.

The draft rebalance reallocates about EUR 48 million in financial support of municipalities for servicing of their overdue debts. The funds relocation procedure will be determined by laws, which are in a final phase of preparation, Tevdovski said.

The draft laws will be submitted to the Parliament if MPs give a green light for launching the legal procedure for constitutional revision.

‘If not, snap elections are to be called and this Parliament would not be able to adopt the budget rebalance. At the moment there is an opportunity for granting support to the municipalities. But if the Parliament fails to approve the motion for constitutional amendments and early elections are to scheduled, this opportunity will be wasted as there is no fiscal space in the draft budget for 2019 for financial support of municipalities,’ Tevdovski said.