Parliamentary battle over budget rebalancing, the government talks about development, the opposition about new debts and a budget hole

The recent parliamentary debate on the budget rebalancing has sparked intense discussions among political factions, highlighting deepening divisions over economic priorities and public welfare. The session, which took place during the continuation of a committee meeting, saw heated exchanges between government representatives and opposition members, each presenting contrasting views on the implications of the proposed changes. At the heart of the debate was the question of whether the rebalancing would address pressing national concerns such as inflation, living standards, and fiscal sustainability, or if it merely shifted financial burdens into the future.

According to the minister of finance, Goran Dimitrijevski-Kochoska, the budget rebalancing for 2026 does not stem from a lack of revenue or liquidity issues but rather from the need to align budget projections with new economic conditions. She emphasized that the adjustments aim to ensure additional funds for legal obligations, including regular salary payments in sectors experiencing growth, increased support for agriculture, social protection, and municipalities, as well as efforts to accelerate the investment cycle. The revised total revenues for 2026 are projected at 379.5 billion denars, with tax revenues remaining close to their initial forecast of 213.2 billion denars. Non-tax revenues have seen significant improvement, increasing by nearly two billion denars, while donations have also risen.

In contrast, opposition leaders, particularly Sana Lukareshka from SDSM, criticized the rebalancing as insufficient in addressing immediate challenges faced by citizens. She argued that the measures fail to tackle critical issues such as inflation and the declining standard of living, noting that inflation is eating into wages and that the budget is expanding consumer spending without concrete solutions. Lukareshka pointed out that the document lacks specific measures to reduce inflation and raised concerns about the state of the pension system. She stressed that discussions about deficits and classifications should translate into tangible benefits for families, emphasizing transparency in investments rather than vague promises of development.

Bojan Stojanovski from VMRO-DPMNE offered a more optimistic perspective, asserting that the rebalancing does not represent a shift in economic direction but rather a reinforcement of existing strategies. He highlighted that the document demonstrates how the state is adapting to real economic movements and is focused on implementing projects with developmental impact. According to Stojanovski, capital expenditures are set to increase by 5.8 billion denars, while development subprograms will see an increase of over 4.2 billion denars. These investments are directed towards infrastructure, healthcare, education, sports facilities, and environmental improvements, he explained, arguing that these are not mere expenses but essential steps toward long-term national progress.

Mališa Stanakovski, another VMRO-DPMNE representative, further elaborated on the positive developments in revenue collection. He noted that overall revenues have grown by 5.7% in the first six months of the year, with tax revenues up by 6.3%, contributions by 6.4%, and other non-tax revenues by 12.4%. Stanakovski attributed this growth to measures taken to reduce excise taxes, which helped mitigate the negative effects of the global energy crisis on households. He also cited improved performance in key sectors such as industry, construction, and agriculture, with industrial output rising by 0.8%, construction by 7.2%, services by 3.6%, and agriculture by 2.9%. Additionally, he confirmed that pensions were not only maintained but increased by 1,000 denars following requests from pensioners and citizens.

Stanakovski also highlighted the successful repayment of a 700 million euro debt inherited from previous governments, along with the resolution of a 50 million euro issue related to solidarity taxes. He emphasized that collective agreements were signed with the remaining administrative bodies, contradicting opposition claims that salaries would not rise. Furthermore, he noted that capital investment realization had increased by 53% compared to the previous year, underscoring the government’s commitment to infrastructure development.

As the debate continues, both sides remain entrenched in their positions, with the government defending its approach as necessary for economic stability and development, while the opposition insists that the current strategy fails to meet the urgent needs of the population. The outcome of this discussion will likely shape the trajectory of fiscal policy in the coming years, influencing how resources are allocated and prioritized in the face of ongoing economic and social challenges.