Tevdovski: The budget rebalance will improve the financial situation of the municipalities

The budget rebalance will provide support for 51 percent of the reported, but unpaid liabilities of the municipalities. Three billion denars are projected for schools, kindergartens, cultural centers and other institutions that are under the jurisdiction of local self-governments, Finance Minister Dragan Tevdovski announced today.

As Tevdovski pointed out at the press conference in the Government, which includes the Minister of Local Self-Government Suhejl Fazliu, as well as the mayors of the municipalities of Bitola, Tetovo and Gevgelija, Natasa Petrovska, Teuta Arifi and Saso Pockov, besides the budget rebalance will be given to them help the municipalities improve the financial situation, it will also enable the establishment of a mechanism for the problem of borrowing not to repeat itself, injecting companies’ liquids and making room for new projects.

The municipalities, mentioned Tevdovski, will be able to project their own revenues to the basic budget with a maximum of 10% increase from the average realization in the last three years.

– Debts of 5.1 billion MKD for a year have been reduced to 1.5 billion and now the institutions can function normally. The main reason for the unpaid liabilities so far was the unrealistic design of the budgets of the municipalities. Big budgets were created and commitments were made that could not be paid at that time. We are now introducing a mechanism to prevent this. We will put an end to the problem, but also to prevent it from happening in the future, the minister said.
The budget rebalance was adopted at a government session and will be discussed tomorrow in a committee debate in the Assembly.