8th October 2026, Skopje - 2026 Supplementary Budget is s timely response by the Government to align the budget projections with the changing economic conditions and the actual developments in the economy through the end of this year, reaffirming our commitment to responsible public finance management and clearly defined priorities, Minister of Finance, Gordana Dimitrieska-Kochoska, said at today’s press conference, presenting the draft modifications and amendments to the 2026 Budget (2026 Supplementary Budget), which the Government adopted yesterday.
“Over the past period, the global crisis has posed new challenges, particularly through higher energy process and heightened price pressure. When we prepared the first Supplementary Budget in June, we expected the conditions on the international markets to gradually stabilize. Unfortunately, developments since then have taken a different course. Geopolitical crisis has deepened, energy prices have continued to rise, and the Government has taken concrete measures to cushion the impact on the citizens and the economy. The stabilization of inflation is evidence that these measures were timely and properly designed, preventing higher oil prices from triggering broader increases in the prices of other goods and services,” the Minister said.
She added that reduction of fuel excise duties and VAT rate on diesel from 18% to 10% were introduced with the primary objective of protecting the living standard of the citizens and helping the businesses to easier absorb the effects of the price shock. However, these measures also had a direct effect on the budget revenues. According to the Minister, the second Supplementary Budget was therefore necessary in order to bring revenue and expenditure projections in line with the prevailing economic trends and ensure the smooth execution of the Budget until the end of the year.
“The second Supplementary Budget is not a result of any Budget liquidity concerns. Rather, it is a prudent response to the changing economic conditions, with the priorities remaining unchanged - protecting the citizens, meeting all legal obligations, supporting economic activity and preserving fiscal discipline”, Dimitrieska-Kochoska emphasized.
Presenting the proposed amendments, she noted that total revenues are projected at Denar 374.2 billion, being by around Denar 5.3 billion lower than previously projected. She explained that this reduction is driven primarily by the developments on the energy market and the Government’s measures to protect the citizens and the economy.
“Budget revenues continue to record positive performance throughout the year.
Tax revenues have been moderately revised downward from Denar 213.3 billion to Denar 209.8 billion, a reduction of 1.6%, under the Supplementary Budget. The largest downward revision relates to excise duty revenues, which have been reduced from Denar 34.1 billion to Denar 30.4 billion. This reflects the reduction in excise duties on petrol and diesel, a measure aimed at cushioning the impact of higher prices of oil derivatives on the citizens and the businesses. While this results in lower budget revenues, it also provides direct support to both the citizens and the economy”, the Minister said.
The Supplementary Budget envisages reduction of around Denar 2 billion in non-tax revenues and donations, with revenue projections for PIT, CIT, VAT and customs revenues remaining stable and within the projected levels. As regards the expenditure side, the Minister underlined that downward revision has been made in a responsible and disciplined manner. Total expenditures are projected at Denar 420.5 billion, being reduced by Denar 5.3 billion compared to the previous projections. The reductions refer to goods and services and subsidies, reflecting more disciplined and efficient spending. Additional funds have been provided to support the most vulnerable groups and strengthen the provision of healthcare services.
“We are reducing expenditures where implementation has been slower or where spending is not linked to top priorities. However, we remain committed to funding for what matters most. Funds have been secured for the vulnerable groups and the healthcare services”, the Minister of Finance said.
Regarding capital expenditures, she noted that they are being revised downward by around Denar 5.7 billion, mainly as a result of the slower implementation pace of certain capital projects. However, she underlined that this downward revision should not be interpreted as a scaling back of capital investments. Investment activity will continue across sectors - defence, road and rail infrastructure, utilities infrastructure, environment, energy efficiency, education, childcare and social protection, agriculture and local infrastructure. The Minister further highlighted the ongoing financial support to municipalities and local capital infrastructure projects, as part of the Government’s commitment to balanced regional development.
Under the Supplementary Budget, as Dimitrieska-Kochoska said at the press conference, economic growth projection remains unchanged at 3.5%, with the budget deficit remaining as projected at Denar 46.3 billion, accounting for 4.1% of GDP.
