Macedonia's central government budget deficit widened to MKD 17.5bn (EUR 283.4mn) in January-September from MKD 15.8bn in the same period of 2013, finance ministry data showed. We estimate that the nine-month gap is equivalent to 3.3% of the projected 2014 GDP. We use the ministry’s latest (as of October) 2014 nominal GDP forecast, which predicts real growth of 3.5% and a GDP deflator of 1.6%. The nine-month deficit reached 89% of the new full-year target of MKD 19.6bn (3.7% of GDP).
Total budget revenues increased by a real 1.7% y/y to MKD 104.6bn in January-September, and total budget expenditures rose by a real 3% y/y to MKD 122bn.
In September alone, the budget deficit narrowed by 52.4% y/y to MKD 476mn. Total revenues increased by a real 15.2% y/y to MKD 12.7bn, and total expenditures grew by a real 9.5% y/y to MKD 13.2bn.
The biggest contribution to revenue growth came from taxes, which expanded by a real 18.5% y/y to MKD 7.1bn in September. Positive annual growth was reported for VAT (+27.4% to MKD 3.6bn), personal income tax (+31.9% to MKD 1.1bn) and excises (+10.8% to MKD 1.7bn). Revenues dropped y/y in real terms for profit tax (-6.6% to MKD 240mn), import duties (-3% to MKD 339mn) and other taxes (-48.9% to MKD 74mn).
|Central govt budget, MKD mn|
|Budget 2014||Sep'14||% y/y real||Jan-Sep'14||% y/y real|
|TOTAL REVENUES, incl.:||155,554||12,742||15.2%||104,564||1.7%|
|Source: Ministry of finance|
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