17th July 2025, Skopje – At yesterday’s session, the Government, upon proposal by the Ministry of Finance, adopted the amended 2025 Supplementary Budget, also incorporating the amendments adopted during the parliamentary Financing and Budget Commission’s debate, thus allocating additional funds to the Ministry of Transport, Ministry of Social Policy, Demographics and Youth and Ministry of Education and Science.
It is about additional Denar 6 million for project documentation for a new traffic artery in the Municipality of Kumanovo, within the Ministry of Transport’s Budget, additional Denar 50 million for payment of social contributions within the Ministry of Social Policy, Demographics and Youth’s Budget, as well as Denar 5 million intended for “Goce Delchev” University within the Ministry of Education and Science’s Budget.
As per the amended draft Supplementary Budget being adopted by the Government, funds have been allocated to various budget users to ensure the regular servicing of liabilities. In other words, by making reallocations, funds at certain budget users have been increased, while at the same time some of the budget users had their funds reduced, all to the end of aligning the expenditures with the expenditure execution so far and the expectations for the remainder of the year. The additional amendments also refer to providing additional funds for wages, as well as servicing of liabilities.
Amendments and modifications to the 2025 Budget are aligned with the key fiscal policy priorities in support of keeping fiscal consolidation on track, ensuring macroeconomic stability, and fostering development, while maintaining the initially projected deficit.
Total revenues in the Supplementary Budget are projected in the amount of Denar 362.4 billion, or by approximately 1% higher compared to the Budget, i.e. by around Denar 3.5 billion.
Total expenditures are projected in the amount of Denar 403.7 billion, surging by approximately 1% or around Denar 3.5 billion, primarily driven by the development component.
Proposed Supplementary Budget involves reallocating funds among budget users and allocating additional funds to ensure uninterrupted wage payments, primarily within the Ministry of Internal Affairs, where employees’ wages have been raised by 10%. Moreover, additional funds have been provided for payment of increased pensions and transitional costs, as well as another almost Denar 300 million has been allocated for capital expenditures.
Capital expenditures are projected in the amount of Denar 47.4 billion, being aimed at allocating additional funds to intensify the implementation of projects already exhibiting significant progress, primarily within the Ministry of Defence.
The Government’s financial assistance and cooperation with municipalities continues, following the previously adopted Decision on Reallocation of Funds, as per which, additional Denar 584 million was provided.
Therefore, the growth rate is not being revised under the Supplementary Budget, holding steady at 3.7% as projected under the 2025 Budget.
Inflation is projected at 2.8%, which stabilization is anticipated, with the unemployment rate being projected at 11.1%.
The ultimate goal of the amendments and modifications to the 2025 Budget is to ensure smooth Budget execution, as well as keep the budget deficit as initially projected. More precisely, the budget deficit remains unchanged both in absolute terms and as a percentage of GDP, specifically, Denar 41.3 billion or 4% of GDP.
The amended Supplementary Budget will be submitted to the Parliament for adoption
