Reallocation of budget funds for timely payment of arrears

18th November 2017, Skopje – Regular payment of current liabilities of all budget users, faster VAT refund, as well as payment of all arrears are the Government’s priority. Reallocation of funds among budget users is focused thereon, being adopted today by the Parliament of the Republic of Macedonia upon proposal by the Ministry of Finance and the Government of the Republic of Macedonia.

Total reallocation of the funds is Denar 1.6 billion, which will be used for paying the large volume-arrears related to the big concert hall Macedonian Philharmonic Orchestra, the equipment in MIA, the construction works of the Faculty of Dramatic Arts, the Albanian Theater in Skopje, the Theater and the Library in Tetovo, as well as translations of books and free textbooks.

-Source to pay these arrears are the proposed cuts in the expenditure items, where low level of execution has been noticed, and where it is not certain that the projected funds will be fully used by the end of the year. In other words, the expenditure items which are not to be executed are being cut, and these funds are used for repaying the accumulated liabilities - Minister of Finance Dragan Tevdovski said, stressing that the low level of execution of these types of expenditures is due to the political uncertainty in the first half of the year, as well as the local elections in the second half of the year.

Parliament of the Republic of Macedonia provided support for reallocation of funds among the budget users, thus providing funds for paying all arrears.

Ministry of Finance and the Government of the Republic of Macedonia remain committed to regular and timely servicing of the liabilities.