30th July 2026, Skopje - 2026 Supplementary Budget, adopted by the Parliament on Monday, delivers a strong solution and is one of the rare supplementary budgets in recent years unlocking more funds for capital expenditures, Minister of Finance, Gordana Dimitrieska- Kochoska, highlighted in her guest appearance in MTV Newscast.
“This Supplementary Budget delivers a sound solution, considering the overall economic situation, not only in Macedonia but also in a wider geopolitical context, and the uncertainties that lie ahead. It stands out as one of the rare supplementary budgets that brings an increase in capital expenditures. Thereby, I must emphasize that the increase in capital expenditures directly translates into specific investments. In other words, we are not speaking of transfers, advance payments, reallocations to public enterprises and similar, which in the past were recorded as capital expenditures without resulting in actual investments. That is exactly what I find encouraging. For the first time, spending has been revised upward by approximately six billion denars”, the Minister said.
She added that almost all Ministries are seeing increased funding, with the largest part of the planned rise in capital expenditures allocated to the AA program, which shows a very high percentage of implemented capital investments, with activity on the ground visibly advancing at an accelerated pace. In the Ministry of Environment and Physical Planning, funds are increased across several budget items, most notably in capital expenditures, including Denar 700 million allocated for the Skopje wasterwater treatment plant. There are also multiple projects carried out by the Ministry connected to IPA funding. There is likewise an increase in capital expenditure item within the Ministry of Defense.
The Minister clarified that, under the Supplementary Budget, projected total revenues cover the current expenditures, with the remaining difference directed towards capital spending. “This means that the entire budget deficit is in fact used to finance capital expenditures, which citizens commonly recognize as investments. We can all agree that projects are being put into operation on a daily basis, in virtually every community. This proves that implementation on the ground is visible and real. Every citizen can see it with their own eyes, which clearly shows that capital spending, I would say, is assigned the most substantial increase under the Supplementary Budget.
On the other hand, from an economic perspective - gross domestic product and GDP growth, it is evident that the Government also contributes to growth, even though GDP growth is not solely a result of government actions and measures. However, the Government does play a partial role in the increase of the gross domestic product”.
She also referred to budget revenue collection, noting that revenues are collected on regular basis, with the published data indicating strong revenue performance across all tax categories. The only item with lower collection is excise duties, being directly linked to the measures undertaken by the Government.
As regards public debt and borrowing, she pointed out that public debt stock has so far been successfully managed, the situation remains stable, with borrowing contributing to economic growth.
