28th October 2025, Skopje - The Government today adopted the 2026 Draft Budget which, according to the Minister of Finance, Gordana Dimitrieska-Kochoska, builds on the country’s favourable economic trends and reflects clear commitment to achieving accelerated economic growth and implementing fiscal consolidation through strict fiscal discipline.
“Fiscal policy to be pursued in 2026 will be aimed at maintaining macroeconomic stability and supporting economic activity. We will continue implementing the measures aimed at curbing the informal economy and strengthening the budget revenue collection. The Budget will be based on realistic projections - revenues are planed according to actual capacities, while expenditures are targeted towards strategic priorities. Moreover, gradual fiscal consolidation and disciplined public finance management will proceed, ensuring greater efficiency and accountability in using budget funds. Non-essential expenditures will be reduced, while support to both citizens and businesses will be provided on the basis of clear criteria and enhanced monitoring.
Total revenues are projected in the amount of Denar 374.7 billion, with total expenditures amounting to Denar 413.9 billion. We thus continue implementing strict fiscal discipline, with revenue growth outpacing expenditure growth. Budget deficit will reach Denar 39.2 billion or 3.5% of GDP, dropping by 0.5 p.p. in relation to 2025”, the Minister of Finance said.
As she emphasized, Ministry of Finance based its 2025 projections on the draft budget requests submitted by the budget users, guided by the principles of realism, cost-effectiveness and efficiency. Thereby, only essential expenditures necessary for the day-to-day operations of the institutions and timely servicing of their liabilities and fulfilment of their obligations were included.
Dimitrieska-Kochoska also highlighted that the Draft Budget places special emphasis on the development component, substantiated by sizable capital investments, projected in the amount of Denar 40.5 billion.
“We expect faster implementation of capital projects that are already in an advanced stage and funded from the Budget, alongside launching the announced projects in the field of road and rail infrastructure, healthcare and education. Investments are also likely to benefit from municipal infrastructure projects to be implemented in the coming period. These capital projects are set to become the driving force of economic growth in 2026, projected at 3.8%. Growth will also be supported by private investments and private consumption boosted by rising wage and pension”, Dimitrieska-Kochoska underlined.
Under the 2026 Draft Budget, wages and pension will be paid on time, alongside social transfers.
Social transfers are projected in the amount of Denar 206.3 billion, increasing by 6.7%, wages are projected at Denar 52.6 billion, surging by 7% compared to 2025, with pensions being projected at Denar 116.8 billion, a 9.7% rise.
She emphasized that measures to ensure accountable public finance management will remain in place, including gradual reduction of expenditures and maintaining sustainable level of budget deficit and public debt. Achieving this will rely on strict control over assuming new liabilities and adhering to the budget limits, carefully planning the new employments in line with the available budget resources, improved collection of own revenues by the public institutions, reduction of non-productive spending and rational use of public funds, realistic planning and timely execution of capital expenditures, redesigning the system of subsidies and social transfers by introducing stricter criteria strengthening the fiscal discipline and transparency, as well as digitalization of the processes to deliver more efficient and higher-quality public services.
