To begin with the assumption of economic growth on which the revenue side of the budget is based, its entire construction is immediately called into question. In the state of continuous political turmoil, there has been a decline in many fields over the past year, especially in the area of capital investment, and it should be borne in mind that companies are generating lower profits.
It is therefore unclear on what parameters the projected growth of 3.8% next year is based, given that we are entering an election year and in the first 6 months of the year until the formation of a new government everything will be stalled due to uncertainty if held elections in April 2020.
The way the budget was planned to be spent could have been more transparent, so that the line ministry, through a wide-ranging professional debate, would gain input from stakeholders on how to improve the structure of public spending and how much the revenue side would is real.
From the information circulating to the public, the conclusion is that the budget is intended to raise salaries in education, health, and pensions, but not how it will help the economy and citizens get better services, as systemic problems will not be resolved. this way, neither will the productivity of the budget-paying companies so that they can withstand higher wages and costs.
On the other hand, capital investment is suffering, a field that has fallen over the past year, given that we have a strategic commitment to Macedonia’s infrastructure connectivity for a faster flow that should remain in the priorities, but also to stimulate the work of over 20 businesses. branches.
Lastly, financing spending that will not stimulate productivity growth and improving the working conditions of the private sector that drives the economy is a difficult decision for budget makers to be accountable not only to public administration employees and pensioners, but also before the private sector that employs 80% of the total number of citizens in the country. Of the heavy budget of 3.9 billion euros for 2020, 109 million euros or about 3% are earmarked for direct support to the private sector.
Macedonian Chambers of Commerce