Response of the Fiscal Policy on the Global Economic Crisis in the Republic of Macedonia

Abstract

Fiscal policy in terms of the global economic crisis gain the key "five minutes" in the last three/four decades, and prove that it is still an important tool for stabilization, especially for support/recovery of economies on national and global lavel. Macedonia was not an exception of this global trends in this Одговор на фискалната политика на глобалната економска криза во Р. Македонија 361 direction, although the support of fiscal policy (tax reform, reducing contributions and introducing a flat tax) for the economy began in the pre-crisis period. An important foundation that allow further active involvement of fiscal policy in dealing with the global crisis was relatively good fiscal position of the domestic economy in the pre-crisis period - low deficits and low public debt (which was significantly reduced in the period before the crisis). The crisis was the reason for enhanced fiscal activity in the domestic economy, further analyzed by shifting fiscal positions (deficits, public debt, public spending, and their structure etc..), and anti-crisis packages that were directly aimed at reducing the effects of global economic crisis on domestic economy.