Macedonian government sets 2014 budget deficit target at 3.5% of GDP.

By bne IntelliNews September 19, 2013

PM Nikola Gruevski announced that the preparation of the next year’s budget is at a final stage and it envisages a deficit of 3.5% of GDP, a release on the government’s website informs. The budget is based on projected GDP growth of 3.2% and inflation of 3.3%. The PM commented that the government will continue the policy of increasing the capital investments for large infrastructure projects.

Gruevski also said that the cabinet plans to increase pensions, welfare and public sector salaries by 5% next year. The pensions and social benefits will rise as of March, and the salaries will go up as of October.

As a percentage of GDP, the deficit target for next year is equal to the still effective target for this year. However, it is likely that the full-2013 deficit outcome will exceed 3.5% of GDP. We remind that the budget deficit was already at 2.9% of GDP in Jan-Jul 2013. In the first seven months of this year, total budget revenues decreased by 1.9% y/y in real terms to MKD 80.7bn (EUR 1.3bn), while total expenditures rose by a real 2.8% y/y to MKD 95.1bn. Previously, deputy PM and minister of finance Zoran Stavreski said that the decision whether this year’s budget will be revised will be made in September and will depend on the performance in August.

Related Articles

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

North Macedonia banks' loan portfolio expands 5.3% y/y, deposits up 8% y/y at end-October

The total loan portfolio of North Macedonia’s commercial banks expanded by an annual 5.3% at the end of October to MKD437.7bn (€7.1bn), slowing slightly from a 5.8% y/y increase in the previous ... more

Dismiss