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

Poroshenko officially nominates Smolii for post of Ukraine central bank governor

Ukrainian President Petro Poroshenko has nominated Yakiv Smolii, the acting head of National Bank of Ukraine (NBU), as a candidate for the post of governor to replace the outgoing governor ... more

Moody’s raises Mongolia’s long-term issuer and senior unsecured ratings to ‘B3’ with stable outlooks

Moody's Investors Service on January 18 raised Mongolia's long-term issuer ratings and senior unsecured ratings from Caa1 to B3 with stable outlooks. The ... more

Azerbaijan's IBA sees assets fall 29% y/y in 2017 after debt restructuring

The assets of the International Bank of Azerbaijan (IBA), the largest lender in the country, contracted by 28.9% y/y to AZN8.7bn ($5.1bn) in 2017, the state-controlled bank reported on January 10. ... ... more

Dismiss