Macedonia's budget deficit reaches 3.4% of GDP at end-October

By bne IntelliNews November 26, 2014

Macedonia's central government budget deficit widened to MKD18.1bn (€294.1mn) in January-October from MKD17.1bn in the same period of 2013, finance ministry data showed. We estimate that the 10-month gap is equivalent to 3.4% of the projected 2014 GDP. The 10-month deficit reached 92.4% of the new full-year target of MKD19.6bn (3.7% of GDP).

Total budget revenues increased by a real 3.2% y/y to MKD118.2bn in January-October, and total budget expenditures rose by a real 3.6% y/y to MKD136.3bn.

In October alone, the deficit narrowed by a real 51% y/y to MKD656mn. Total revenues increased by a real 15.9% y/y to MKD13.7bn, and total expenditures grew by a real 9.1% y/y to MKD14.3bn.

The biggest contribution to revenue growth came from taxes, which expanded by a real 24.8% y/y to MKD8.3bn in October. Positive real annual growth was reported for profit tax (+4.3 times to MKD785mn), VAT (+16.4% to MKD4bn), personal income tax (+30.5% to MKD1.1bn) and excises (+15% to MKD1.9bn). Revenues dropped y/y in real terms for import duties (-1.2% to MKD377mn) and other taxes (-22.3% to MKD92mn).

Central govt budget, MKDmn          
  Budget 2014 Oct'14 % y/y real Jan-Oct'14 % y/y real
TOTAL REVENUES, incl.: 155,554 13,673 15.9% 118,237 3.2%
Taxes 85,189 8,264 24.8% 68,112 7.7%
Contributions 44,703 3,919 9.7% 36,073 5.1%
TOTAL EXPENDITURES 175,157 14,329 9.1% 136,347 3.6%
Current Expenditures 154,073 12,711 6.6% 123,135 3.9%
Capital Expenditures 21,084 1,618 33.9% 13,212 0.4%
BUDGET BALANCE -19,603 -656 -51.0% -18,110 6.0%
Source: Ministry of finance          

Related Articles

Macedonia’s ex-PM Gruevski fears for his life, asks for additional bodyguards

Macedonian ex-prime minister and opposition leader Nikola Gruevski is seeking at least 20 more bodyguards from the state police, as he says he fears his life is threatened. Gruevski, leader of the ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Macedonia’s opposition VMRO-DPMNE tries to block parliament's work

Macedonia’s opposition VMRO-DPMNE party is trying to block the work of the parliament by forming 10 parliamentary groups instead of the single group that is normal for a political party.  ... more