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%.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

China to provide $250mn for new Tajik parliamentary building

China is to provide $250mn for the construction of a new and expensive parliamentary building in Tajikistan, CA-News reported on July 20. Tajikistan is ... more

Creditors of Turk Telekom’s owner Saudi Oger reportedly in talks to sell its 55% stake

Some creditor banks of struggling Saudi construction giant Oger’s Dubai-based unit Oger Telecom are in unofficial talks to sell its 55% stake in Turkey’ largest telecom operator Turk ... more

Ukraine injects another €760mn into nationalised PrivatBank

The Ukrainian authorities have issued domestic government bonds in the amount of UAH22.5bn (€759mn) in exchange for the bank’s shares as part of the additional capitalisation of nationalised ... more

Most Read

  1. Siemens considers quitting Russia
    9 days ago
  2. Wildfires hit Croatia and Montenegro’s Adriatic coast
    5 days ago
  3. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    4 days ago
  4. MACRO ADVISER: It's the oil price, stupid
    6 days ago
  5. Turkey dismisses thousands of people from duty on eve of coup anniversary
    7 days ago
  1. CHINA RISING: When sleeping giants meet
    12 days ago
  2. Belarus’ retail king Euroopt goes on the road
    18 days ago
  3. STOLYPIN: Russia’s cyber-challenge cuts both ways
    20 days ago
  4. Siemens considers quitting Russia
    9 days ago
  5. COMMENT: Gazprom’s exit from Turkey is a sign of the times
    10 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss