Macedonian government adopts budget revision, keeps deficit at 2.7% of GDP

By bne IntelliNews October 14, 2018

The Macedonian government adopted the 2018 state budget revision on October 13, but kept the planned deficit at 2.7% of GDP.

The adoption of the revised budget by the parliament will depend on the critical upcoming vote on the name deal with Greece. This is due to be debated at a session that will start on October 15. If the constitutional changes are not approved, an early general election will be called, and there will be no budget revision.

If it does go ahead, this will be the first revision of the 2018 state budget. It is primarily aimed at helping municipalities, which will obtain MKD3.02bn (€49.1mn), to lower their debts. Under the revision, the funds will be also reallocated among budget beneficiaries, costs for capital investments will be cut, while the state pension fund will receive MKD1.8bn to continue regular pension payments.

Revenues are being revised to MKD192.5bn (€3.1bn) while expenditures will total MKD210.5bn, both down by 0.5% from the previous projections. The deficit is projected at MKD18.1bn, slightly down from the previous MKD18.2bn, the government said in the statement.

The economic growth projection was cut to 2.8% from 3.2%.

According to the latest finance ministry data, Macedonia's central government consolidated budget deficit narrowed 37% y/y to MKD6.84bn in the first eight months of 2018.

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