Macedonian govt raises 2015 budget deficit target, lowers GDP growth outlook

By bne IntelliNews July 20, 2015

Macedonia's outgoing government has adopted a revision of its 2015 budget, boosting the deficit target to 3.6% of GDP from 3.3%, chiefly on the back of higher expenditure, the finance ministry said in a statement. It also lowered its economic growth forecast to 3.5% from 4%, citing the political crisis, which deteriorated in Q2 and uncertainties concerning the debt crisis in neighbouring Greece.

Ahead of the snap polls scheduled for April 2016, the cabinet raised its total expenditure target by MKD5.2bn to MKD187bn. The increase comes mainly from current expenditure, which has been lifted by MKD4.1bn.

At the same time, total revenue projections have been increased by MKD3.6bn to MKD166.9bn, as the government expects to collect MKD6.1bn more in taxes despite the weakening growth. The projected non-tax and capital revenues, as well as contributions were all lowered.

The deficit target has thus been revised to MKD20.1bn from MKD18.5bn.

Macedonia's budget deficit narrowed by a real 40.3% y/y to MKD7.9bn in January-May, with revenues up 14.8% y/y to MKD65.9bn and expenditure up 4.5% y/y to MKD73.8bn.

The country’s GDP grew 3.2% y/y in Q1 and 3.8% in 2014. Earlier this month, the International Monetary Fund (IMF) cut its 2015 GDP growth forecast for Macedonia to 3.2% from the previous 3.8%.

Related Articles

Hungary finally joins the negative yield club

Hungary finally joined the negative yield club on March 21 as Government Debt Management Agency AKK  accepted a bid of -0.01% at an auction of 3-month T-bills. Hungarian yields have been on ... more

S&P improves Russia's outlook to Positive

Standard & Poor's improved the outlook on Russia's sovereign ratings from Stable to Positive, while affirming the 'BB+/B' foreign currency rating and 'BBB-/A-3' local currency rating, the agency ... more

IMF delays new $1bn tranche to Ukraine due to Donbas blockade

Ukraine's main donor, the International Monetary Fund (IMF), has cancelled a board meeting scheduled for March 20 that was expected to see the release of a $1bn tranche to Ukraine, while demanding ... 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