Skopje, 24 March 2026 (MIA) - It is easy to pass a set of measures but they could stir inflation. Measures should be carefully analyzed and it is no coincidence that we have started with the VAT decrease. We will respond as necessary, said Finance Minister Gordana Dimitrieska Kochoska on Tuesday.

"The situation must be carefully monitored, taking into account budgetary constraints. It would be easy to create an 8-percent deficit, as we had in the past, but someone has to pay for this in the future. I believe that a responsible government should carefully target measures and take timely decisions. This is a moment when global experts say countries must save, as should companies and households, because no one knows how long this situation will go on. What bothers me is the fact that more than seven percent of the oil-producing capacities are now gone, and this might have a long-term effect, even if the war ends in a week," Minister Dimitrieska Kochoska told a high-level conference hosted by the National Bank.

The FinMin said the decision to reduce the VAT for fuels was the first to be made because the options were most favorable in that aspect, adding it is expected that prices will go up.

"This is a situation in which everyone should chip in, because the state has always supported companies through various mechanisms, most recently through the Hungarian loan and state subsidies. Companies should respond and help. Prices are not significantly affected for now. We will monitor developments but the fact remains there are budget restrictions and we are obligated to ensure fiscal consolidation and give priority to stable public finances. The country is managing the situation in the right way," said Dimitrieska Kochoska.

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