Macedonia's budget deficit reaches 3.1% of GDP at end-July 2014

By bne IntelliNews August 26, 2014

Macedonia's central government budget deficit widened to MKD 15.4bn (EUR 250.7mn) at end-July 2014 from MKD 14.3bn a year earlier, finance ministry data showed. We estimate that the gap for the first seven months of the year is equivalent to 3.1% of the projected 2014 GDP. The seven-month deficit already reached 84.5% of the still effective full-year target of MKD 18.3bn (3.7% of GDP).

We remind that the government has proposed a revision of the 2014 budget, which envisages raising the deficit target to 3.9% of GDP. The parliament’s finance and budget committee started debates on the revision on Monday (Aug 25). The discussions must be completed within 10 days. As many as 236 amendments to the originally proposed budget revision have been submitted.

Total budget revenues increased by a real 0.9% y/y to MKD 81.4bn in Jan-July 2014, and total budget expenditures rose by a real 2.0% y/y to MKD 96.9bn.

In July alone, the budget reported a deficit of MKD 681mn, up from a deficit of MKD 510mn in July 2013. Total budget revenues dropped by a real 12.7% y/y to MKD 12.9bn last month, and total budget expenditures contracted by a real 11.1% y/y to MKD 13.6bn. The fall in revenue was driven by non-tax revenues, which decreased by a real 69.8% y/y to MKD 815mn in July 2014.

On the other hand, tax revenues expanded by a real 2.1% y/y to MKD 7.8bn in July. Positive real annual growth was reported for personal income tax (up 16.5% to MKD 1bn), profit tax (up 47.7% to MKD 423mn) and VAT (up 5.4% to MKD 4.5bn). Revenues dropped y/y in real terms for excises (down 0.7% to MKD 1.5bn), import duties (down 11.6% to MKD 313mn) and other taxes (down 81.4% to MKD 69mn).

Central govt budget, MKD mn          
  Budget 2014 Jul'14 % y/y real Jan-Jul'14 % y/y real
TOTAL REVENUES, incl.: 158,243 12,879 -12.7% 81,429 0.9%
Taxes 87,222 7,847 2.1% 46,950 6.4%
Contributions 45,153 3,818 0.8% 24,920 4.2%
TOTAL EXPENDITURES 176,514 13,560 -11.1% 96,868 2.0%
Current Expenditures 154,137 12,368 -9.1% 87,229 2.3%
Capital Expenditures 22,377 1,192 -27.8% 9,639 -0.2%
BUDGET BALANCE -18,271 -681 33.3% -15,439 7.9%
Source: Ministry of finance          

Related Articles

Macedonia to issue Eurobond in 2017 if conditions are "extremely favorable"

Macedonia sees no need to issue a new Eurobond issue in 2017, but this may happen if the circumstances on the international money market are extremely favorable, bne IntelliNews has learned from ... more

DUI leader keeps options open as coalition talks begin in Macedonia

The leader of Macedonia’s ethnic Albanian Democratic Union for Integration (DUI), Ali Ahmeti, said on January 11 that his party will negotiate with the conservative VMRO-DPMNE on the formation ... more

Macedonia’s ethnic Albanian parties set conditions for joining new government

Three ethnic Albanian political parties in Macedonia adopted a joint platform on January 7 asking for more rights as a prerequisite for their participation in the new coalition government, one of the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss