Collection of budget revenues in July showed positive signals of recovery and budget balance realized surplus for the first time in the last couple of months. Revenues were lower by only 4 percent in relation to the projections in the 2009 Supplementary Budget. The Government expects for such developments to continue in August as well.

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At the press-conference today, Vice Prime Minister and Minister of Finance, Zoran Stavreski, informed that July was the best month concerning the collection of budget revenues, thus the total revenues in the budget reached Denar 7.373 billion, whereby tax revenues accounted for Denar 6.778 billion. In June, as Vice Prime Minister pointed out, tax revenues amounted to Denar 4.995 billion, and in May, they reached Denar 5.145 billion.

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– Revenues collected in July were by Denar 1.8 billion higher then the revenues in May and June, underlined Stavreski and added that compared to the revenues collected in July last year, they were by 2.5% higher.

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Tax revenues, explained the Minister of Finance, have come closer to the projections in the Supplementary Budget, thus VAT revenues accounted for 97.5%, and total tax revenues accounted for 95.5%. Tax revenues in May and June were by 15% to 20% lower then the projected.

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– This shows that there is a trend, or a trend might be beginning, of gradual recovery of the budget revenues. We believe that this trend will continue in the next months, i.e. we will strive for regular collection of revenues for the state to be able to service its liabilities on the expenditure side, Stavreski underlined, adding that this also contributes to better budget liquidity. He pointed out that no funds from the Eurobond have been used to cover the current expenditures.

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Although budget surplus was realized in July, the budget shows deficit for this year on cumulative basis. We managed to restore the budget surplus to around Denar 266 million in July, reducing the budget deficit, on cumulative basis, to Denar 5.3 billion in the first seven months. It is projected for the budget deficit to amount to Denar 8.7 billion on annual basis, Stavreski said.

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According to him, it reflects that budget liquidity in July improved, as well as that there will be no problems to cover current expenditures with the current revenues.

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– All rights gained regarding the social rights, salaries, pensions, allowances, social transfers and all other expenditures are executed according to the envisaged dynamics. I expect for such developments of revenue recovery to continue in August, this tendency will continue, but it is too early to say the size of the total revenues and the total expenditures by the end of the year. However, these first signs of recovery show that we can expect to be within the projected budget deficit of 2.8% of GDP, Vice Prime Minister and Minister of Finance, Zoran Stavreski, said.

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The Minister pointed out that the improved revenue performance in July did not mean that the Government will deny the need for Supplementary Budget, since as set, Supplementary Budget will be proposed to the Government in the course of August, and following 1 September, 2010 Budget preparation will continue.

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As announced, non-productive expenditures will be cut in the Supplementary Budget, and it is expected for the realization of capital investments to increase in the second half of the year, which accounted for 40% in the first six months.

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New Supplementary Budget will be adjusted to the real developments in the economy.

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At the press conference, Stavreski estimated today’s auction of six-month treasury bills with foreign currency clause as successful. At the auction, Denar 1.5 million was offered, with 5.5% interest rate.(MIA)

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