The balance of the central government budget showed a deficit of MKD 14.4bn (EUR 233mn) in Jan-Jul 2013, according to data of the ministry of finance. The seven-month gap is equal to 2.9% of the projected 2013 GDP. The Jan-Jul deficit already accounts for over 81% of the full-year deficit target of MKD 17.7bn. It is also significantly larger than the MKD 9.9bn gap registered in Jan-Jul 2012. In Jan-Jul 2013, total budget revenues decreased by 1.9% y/y in real terms to MKD 80.7bn, while total expenditures rose by a real 2.8% y/y to MKD 95.1bn.

Earlier this month, deputy PM and minister of finance Zoran Stavreski said that the decision whether Macedonia’s 2013 budget will be revised will be made in September and will depend on the performance in August.

In July alone, the budget balance was in a deficit of MKD 534mn, down from a deficit of MKD 1.9bn in July 2012. Total budget revenues increased by a real 13.6% y/y to MKD 14.7bn, and total expenditures grew by a real 1.9% y/y to MKD 15.2bn.

The single biggest contribution to the strong revenue growth in July came from non-tax revenues, which jumped 2.3 times y/y to MKD 2.6bn.

Taxes expanded by a real 1.2% y/y to MKD 7.7bn in July. In real terms, positive y/y growth was reported for personal income tax (up 4.2% to MKD 860mn), profit tax (up 45.7% to MKD 286mn), and other taxes (up 40.7% to MKD 366mn). Negative annual real growth was reported for VAT (down 1% to MKD 4.3bn), excises (down 4.1% to MKD 1.5bn) and import duties (down 7.6% to MKD 353mn).