Increasing Public Debt in Macedonia
The new Minister of Finance, Gordana Dimitrieska Kochoska, recently announced at a press conference in the government that there will be new borrowings by the end of the year. However, it has already been reported that the state has been instantly indebted by 48 million euros through a government bond issued on July 11 with a maturity of 15 years. Adding to this, the Prime Minister’s announced borrowing of 500 million euros from the Republic of Hungary, the total PUBLIC DEBT would reach a record high of nearly 9 BILLION EUROS. With such a situation, will Macedonia face problems?
The consequences of irresponsible budget management
When it comes to servicing debt, we as citizens will have to repay 1.8 billion euros by 2028, based on interest rates. This puts a huge strain on our economy and future generations.
Continued mismanagement
In terms of budget rebalancing, the practice of cutting capital investments every year continues. 325 million euros earmarked for capital investments have been reallocated to other purposes, continuing the unproductive spending of public funds by the government. This irresponsible policy has increased the budget deficit by an additional 181 million euros.
