Macedonia’s budget deficit stays at 1.1% of GDP at end-April

By bne IntelliNews May 27, 2015

Macedonia's central government budget deficit narrowed by 48.2% y/y to MKD6.3bn (€102.3mn) in January-April, finance ministry data showed. We estimate that the four-month gap is equal to 1.1% of the projected 2015 GDP, the same as at end-March, as the budget was virtually balanced in April. The full-year deficit target is MKD18.5bn or 3.3% of GDP.

Total budget revenues increased by a real 15.3% y/y to MKD52.2bn in January-April, whereas total expenditure rose by a real 1.8% y/y to MKD58.5bn.

In April alone, the budget posted a small surplus of MKD8mn, reversing a deficit of MKD1.2bn in April 2014. Revenues went up by a real 8.8% y/y to MKD14.4bn, while expenditure edged down 0.1% y/y to MKD14.4bn. The biggest contribution to revenue growth came from profit tax, which jumped 2.6 times y/y to MKD2.2bn. Tax revenues hence climbed 17% y/y to MKD8.7bn, with personal income tax up 11.6% to MKD1.1bn and excises up 4.2% to MKD1.4bn. On the other hand, VAT fell 6% to MKD3.5bn, other taxes dropped 25.1% to MKD60mn, and import duties declined 2.2% to MKD376mn.

In assessing the importance of fiscal policy in Macedonia, one should keep in mind that the country implements a fixed exchange rate regime.

Central govt budget, MKDmn          
  Budget 2015 Apr'15 % y/y real Jan-Apr'15 % y/y real
TOTAL REVENUES, incl.: 163,280 14,383 8.8% 52,162 15.3%
Taxes 87,465 8,660 17.0% 30,595 20.1%
Contributions 48,717 4,232 12.8% 15,164 9.3%
TOTAL EXPENDITURE 181,777 14,375 -0.1% 58,455 1.8%
Current Expenditure 160,569 13,102 3.2% 53,038 3.0%
Capital Expenditure 21,208 1,273 -24.8% 5,417 -9.1%
BUDGET BALANCE -18,497 8 - -6,293 -48.2%
Source: Ministry of finance          

Related Articles

Macedonian interior ministry suspends 16 police officers over parliament storming

Macedonia's interior ministry suspended 16 policemen on May 20, including one senior officer in the ministry, for failing to attempt to stop the violent incidents in the parliament on April 27, ... more

Skopje court postpones trial of those indicted for violence in the Macedonian parliament

A Skopje court has on May 18 postponed the trial of the nine people indicted for the violence that took place during the storming of the parliament on April 27 following the ... more

Macedonian president again asked to give mandate to Zaev to form government

Macedonian President Gjorge Ivanov reiterated on May 10 that Social Democratic leader Zoran Zaev should provide guarantees that he would preserve the unitary character of the country if he wants to ... 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