Macedonia targets to cut budget gap to 3.2% of GDP in 2016 draft budget

By bne IntelliNews September 25, 2015

Macedonia's outgoing government has adopted a draft 2016 budget, which lowers the deficit target to 3.2% of GDP from 3.6% planned for this year, finance minister Zoran Stavreski said on September 24. The budget is based on a projected GDP growth of 4% and inflation of 2%.

Total budget revenues are planned to increase by a nominal 6% y/y to MKD176.8bn (€2.9bn). Total expenditures are set to rise 4.7% y/y to MKD195.8bn, so the deficit will narrow by 5.7% y/y to MKD19bn. Stavreski noted that under the fiscal strategy the deficit will decrease to below 3% of GDP as of 2017.

On the revenues side, tax revenues and contributions are seen at MKD101.5bn (up 6.5%) and MKD49.2bn (up 4.2%), respectively. On the expenditure side, capital expenditures are planned to go up 12.9% to MKD25.1bn. The draft budget also provides for increases in pensions, social benefits and salaries.

Macedonia will hold early elections on April 24, 2016. The polls will be organised by a new government, headed by a new PM, that will be sworn in on January 15.

Prior to that, on October 20, the main opposition party SDSM will nominate new ministers of interior and labour and social affairs, whereas VMRO-DPMNE will nominate deputy ministers with veto rights on election-relates matters in these two ministries. SDSM will also nominate deputy ministers with veto rights in the ministries of finance, agriculture and information society and administration. These new ministers and deputy ministers will keep their positions in the government that will take office on January 15.

Related Articles

World Bank forecasts a 0.4% y/y decline in Belarus's GDP for 2017

The Belarusian economy will decline by 0.4% year-on-year in 2017, followed by a modest growth of 0.7% in 2018 and 1.2% in 2019, the World Bank forecasts in its Belarus Economic Update published on ... more

EIB and Belarus sign Framework Cooperation Agreement

The European Investment Bank (EIB) and Belarus inked the Framework Agreement on Cooperation on May 15, which paves the way for the lender to invest up to €200mn in Belarusian projects, the Foreign ... more

Ex-owners of Ukraine's PrivatBank fail to restructure loan portfolio, central bank says

Former owners of Ukraine's biggest state lender PrivatBank, which was nationalised in December, Ihor Kolomoisky and Hennady Bogolyubov, failed to demonstrate progress in the fulfillment of its ... 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