Angelovska: Direct support to the private sector in the amount of Denar 6.7 billion projected in 2020 Budget

13th November 2019, Skopje - Private sector is an important driving force of the economic growth, therefore the Government remains committed to creating adequate policies as a response to the key challenges the private sector faces.  This was pointed out by the Minister of Finance, Nina Angelovska, when presenting the 2020 Draft Budget, underlining that Denar 6.7 billion would be injected in the private sector next year through the measures for subsidizing wage allowances, supporting enterprises, as well as the active employment measures.

- As for the measure for subsidizing wage allowances, Denar 2.4 billion is allocated for the companies which will increase the wages from Denar 600 to Denar 6,000. This measure not only addresses the issues of attracting, retaining and motivating quality personnel, but it is also designed in a systemic and sustainable manner, since contributions on increased wages will be collected directly into the pension funds, Angelovska said.

Minister of Finance pointed out that Denar 3 billion is allocated for enhancing the private sector competitiveness through measures for new investments, measures aimed at supporting the export and conquering new markets, supporting job creation, SMEs support, innovative activity, technological development and research, as well as foreign investments in the technological industrial development zones.

Angelovska said that active employment measures projected in the amount of Denar 1.3 billion will support the business, since they provide for retraining and additional professional education of the personnel so as to meet the private sector needs.

- Increasing the VAT registration threshold up to Denar 2 million starting 1st January is also aimed at supporting SMEs. Thus, administrative burden to both taxpayers and tax administration will be reduced, engaging more capacities to combat the grey economy as a real challenge to economic growth, Angelovska said.

Minister of Finance also stated that capital expenditures are projected at Denar 23.6 billion in 2020 all to the end of boosting the economic growth. Capital expenditure projection for next year ranges between the initial Budget projection for this year and the Supplementary Budget projection, and is in line with the so-far execution and the capacities of the budget users.

- We would thus like to show a different manner of planning capital investments. To that end, two weeks ago, Ministry of Finance published a new transparency tool - tracking the execution of capital expenditures. You are invited to use it at least once a month and to give your contribution for better execution, Angelovska said.

Revenues projected in the 2020 Draft Budget amount to Denar 222,300,000,000 (EUR 3,615,000,000), being an increase by 5.6% compared to this year. As for budget expenditures, 5% growth is projected in relation to last year, hence total expenditures amount to Denar 239,700,000,000 (EUR 3,898,000,000).

2020 budget deficit is projected at 2.3% of GDP, being lower in relation to 2019, in line with the 2020 - 2022 Fiscal Strategy and IFIs recommendations.

Deficit is also reduced by Denar 160 million in absolute terms, amounting to Denar 17,385,000,000.