Skopje, 13 September 2023 (MIA) - Capital expenditures until September 11 were realized in the amount of Mden 26 billion, seeing an increase of 136 percent compared to 2022. Continuous work is underway to increase the amount for capital expenditures in the budget, as well as to improve their realization, due to their multiplier effect in the economy, Finance Minister Fatmir Besimi said.

Besimi told the MRTV national broadcaster that the redistribution of part of the funds from capital expenditures with the Budget reallocation, to increase public sector wages and pensions, comes from projects where the dynamics of realization allows it, as well as that significant savings with the redistribution are also made in terms of the goods and services item.

The Minister noted that several funding mechanisms have been introduced in the past few years to improve the realization of capital expenditures by the institutions. One of them is the KAPEF mechanism, which includes three-month targets, and if the realization fails, the institutions reserve capital funds that they have not used.

"During the Budget reallocation, items of individual projects are reduced according to dynamics of implementation. These are mainly funds from development programs through foreign creditors. If the dynamics of realization speeds up towards the end of the year, funds will be withdrawn," said the Finance Minister. 

He pointed out that the realization of capital expenditures is expected to speed up in the last quarter of the year, as is the case every year. 

The Budget reallocation provides Mden 4.25 billion for public sector employees to receive 10 percent higher paychecks as well as an annual leave allowance of Mden 10,000. Also, further Mden 3.5 billion are allocated for pensions. 

In addition, Finance Minister Besimi pointed out that significant savings have been made in the Budget in terms of the goods and services item, though this may not be reflected in the final figure due to an increase in funds for the purchase of medicines and textbooks.

Photo: Ministry of Finance