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

Orban’s new illiberal axis

Amid the furore over Hungarian Prime Minister Viktor Orban’s visit to Tbilisi immediately after the allegedly stolen October 26 general election, a visit by the country’s President Tamas ... more

Green loans in North Macedonia's banking sector up 14.9% y/y in 2Q24

The growth of green loans in North Macedonia’s commercial banks continued in the second quarter of 2024, with an annual increase of 14.9% or by MKD2.6bn (€42.3mn), the central bank said on August ... more

North Macedonia’s Komercijalna Banka launches takeover bid for Stopanska Banka Bitola

North Macedonia's largest bank, Komercijalna banka, announced on August 26 that it has published the takeover bid for local Stopanska banka Bitola. The offered price is set at MKD3,200 (€52) per ... more

Dismiss