N. Macedonia to prioritise salaries, pensions in 2024 budget revision

"The challenge is huge, about 90% of the planned deficit has been spent, but we will deal with the situation," Dimitrieska-Kochoska said in the podcast Kade Se Parite, as quoted by the finance ministry in a statement.

With the rebalancing, some 40 million euro will be allocated for the planned pension increase of 2,500 denars, starting with the September pension, the finance minister said. The new government also plans an additional pension increase of 2,500 denars by June 2025.

The new government also plans to borrow 1 billion euro ($1.07 billion) from an undisclosed member country of the EU, Dimitrieska-Kochoska said, confirming previous statements by prime minister Hristijan Mickoski. This loan will be used to finance capital projects, the finance minister said.

North Macedonia posted a budget gap of 20.5 billion denars ($356.4 million/332.5 million euro) in the first five months of the year, compared with a 15 billion denars deficit in the same period last year, finance ministry data showed earlier this week.

North Macedonia's current budget projects a deficit of 33.5 billion denars in 2024, equivalent to 3.4% of the estimated gross domestic product (GDP).

North Macedonia's parliament on Sunday elected a new coalition government led by Mickoski, leader of nationalist VMRO-DPMNE party, which won last month's general election.

(1 euro = 61.66 denars)