2nd July 2025, Skopje – Debate on the draft modifications and amendments to the 2025 Budget was kicked off in the Parliament on Monday.
Supplementary Budget is aligned with the key fiscal policy priorities, those being: keeping fiscal consolidation on track, ensuring macroeconomic stability, and encouraging development, while maintaining the initially projected deficit.
These amendments are primarily aimed at ensuring uninterrupted Budget execution amidst positive economic trends and intensified pace of implementation, all to the end of timely and efficient financing of all program commitments, liabilities and capital investments.
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 involve 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, and most importantly, another almost Denar 300 million has been allocated for capital expenditures.
Capital expenditures are projected in the amount of Denar 47.5 billion, being aimed at allocating additional funds to intensify the implementation of projects already exhibiting significant progress, primarily within the Ministry of Defense.
She also pointed out that the Government’s financial assistance and cooperation with municipalities continues, following the previously adopted Decision on Reallocation of Funds, as per which, additional Denar 600 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%.
Budget deficit remains unchanged both in absolute terms and as a percentage of GDP, i.e. Denar 41.3 billion or 4% of GDP.
As regards budget deficit financing and debt repayment, blended domestic and foreign borrowing is foreseen. By the end of the year, inflows via domestic securities, loan from the EU, along with other bilateral and international sources, are anticipated.
Thus, Budget amendments are fully aligned with the expected macroeconomic surrounding, fiscal goals and reform priorities.
Amendments are expected to ensure greater spending efficiency, more efficient implementation of capital projects, as well as improved responsiveness to the economic and social needs of the citizens.
