Skopje, 20th August 2015 (MIA) – Thursday afternoon, Parliament of the Republic of Macedonia adopted the modifications and the amendments to the 2015 Budget with 62 “yes” votes and 7 “no” votes.

Deputy Prime Minister and Minister of Finance, Zoran Stavreski, elaborating on the proposed 2015 Supplementary Budget at the 62nd session of the Parliament, pointed out that 2015 Budget execution in the first seven months was better than the expectations, and the collected revenues were higher than the projected ones. Under the proposed Supplementary Budget, as Stavreski said, such revenues will be allocated to the expenditure side for the announced policies, measures, activities and projects.

He underlined that Budget execution, as regards expenditure side, was in line with the projections and total revenues were higher than the expectations and the ones collected last year.

– Budget revenues collected in the first seven months amounted to total of 92 billion 579 million denars, being higher by 11 billion 160 million denars or by 13.7% compared to the same period last year. Such revenue performance has, in a way, provided for the Budget liquidity to be exceptionally good, payment of liabilities towards the companies and the budget users to be performed on regular basis, as well as overall payment in the country to be relaxed. On the other hand however, it has provided for the higher revenues collected to be allocated through the Supplementary Budget. That is the reason why it is proposed, unlike in the previous years, when Supplementary Budget was proposed as a result of revenue underperformance, Deputy Prime Minister Stavreski said.

He explained that VAT revenues experienced lower collection, being fully compensated with the higher collection of revenues on the basis of both profit tax and excises.

Revenues on the basis of profit tax were collected in the amount of 5 billion 142 million, being by 165% higher in relation to 2014, while excise revenues were collected in the amount of 1 billion 981 million denars, being by 22% higher compared to last year. Revenue performance on the basis of health and pension insurance was also favourable.

Expenditures, Stavreski said, reached 103 billion 686 million denars in the first seven months as according to the projections. Payments regarding salaries, goods and services by all budget users were executed on regular basis, as well as transfers under which the envisaged measures for increase of social assistance, regular payment of pensions, subsidies and similar were also realized.

He underlined that additional funds in the amount of Denar 1.115 billion are envisaged for capital expenditures, to be used to intensify the activities under several high priority projects.

The largest amount, i.e. Denar 370 million, will be allocated for the construction of the first leg of the gas pipeline network from Klecovce to Stip. Additional Denar 377 million has been provided for projects for water supply and sewerage in all municipalities in the Republic of Macedonia. Additional Denar 22 million is allocated for the Ministry of Education and Science for the purpose of financing the reconstruction and renewal of schools. Additional Denar 60 million has been provided for financing the reconstruction of “Goce Delcev” student dormitory.

Under the Supplementary Budget, as he said, funds are envisaged for regular payment of the social assistance increased by 10%, as well as additional funds for allowances to all socially vulnerable categories, increase of pensions by 5% as of October, as well as for scholarships.

Stavreski pointed out that it is expected for the budget deficit to be preserved and for level of both public debt and government debt to be maintained under the Supplementary Budget.

As he stressed, budget deficit is projected at 3.5%, level of public debt and government debt at 43.7% and 36% respectively of GDP, hence Republic of Macedonia remains within the zone of low to moderately indebted country.

Under the Supplementary Budget, GDP growth is projected at 3.5%, being by 0.5% lower than the initial projection due to the specific conditions Macedonian economy faced in the past several months.

 

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