23rd June 2026, Skopje - Today, upon proposal by the Ministry of Finance, the Government adopted modifications and amendments to the 2026 Budget, aligning the fiscal projections with the prevailing economic trends and providing additional funding to advance the country’s development priorities.
As the Minister of Finance, Gordana Dimitrieska-Kochoska, emphasized at the press conference held at the Government building, the Supplementary Budget was prepared amid heightened global economic and geopolitical uncertainty, driven by rising energy prices, developments on the international markets and conflicts across certain regions. Despite these challenges, the Macedonian economy remains resilient and upholds positive trends.
The Minister highlighted that, under the Supplementary Budget, total revenues are revised to Denar 379.2 billion relative to the initial 2026 Budget, with tax revenues remaining broadly consistent with the initial projections, standing at Denar 213.2 billion.
“Under the Supplementary Budget, we provide stability of public finances, while creating space for more investments, stronger economic activity and higher-quality services for the citizens. Even amid global uncertainty, we remain committed to accountable public finance management and fostering development”, Dimitrieska-Kochoska said.
As for the expenditure side, the Minister noted that total expenditures are revised to Denar 425.2 billion relative to the initial projections, with additional funds being allocated to clearly defined priorities - agricultural subsidies, rail transport, sports, student and pupil standard, as well as additional support for vulnerable groups through social transfers, soup kitchens and deinstitutionalization measures.
Budget deficit is revised to Denar 46.1 billion, accounting for 4.1% of GDP. As the Minister pointed out, the deficit increase is, for the first time, driven above all by higher capital expenditures and investments in infrastructure.
“Most notably, under the Supplementary Budget, additional funding is provided for capital investments. Capital expenditures stand at around Denar 46 billion, rising by about Denar 5.8 billion or by 14.5% in relation to the initial Budget. Importantly, we are speaking of a deficit that supports development, rather than one that funds current spending”, Dimitrieska-Kochoska said.
Additional funds will be allocated to capital projects of strategic relevance to the country, such as construction of Corridor 8 and Corridor 10-d, Skopje - Blace motorway section, Rail Corridor VIII, investments in water supply and sewerage systems, wastewater treatment plants, water management systems, energy efficiency projects, construction and reconstruction of schools, kindergartens, student dormitories, as well as investments in rural development and agriculture modernization.
“Funding for municipal capital projects is significantly increased, with investments in local roads and utility infrastructure, educational and sports facilities, thereby ensuring balanced regional development and better standard of living for the citizens across all parts of the country”, the Minister said.
Budget deficit and debt repayment, amounting to total of Denar 76.4 billion, will be financed through both domestic and foreign borrowing, with over Denar 54 billion and around Denar 20 billion for foreign debt and domestic debt repayment respectively.
