Today, after three-day debate, Parliament of the Republic of Macedonia adopted the 2009 Supplementary Budget which includes cuts of both the revenues and the expenditures by 3.2%.

&nbsp

Within to the Supplementary Budget, the revenues are projected at Denar 138,459 billion and the expenditures at Denar 149.5 billion. Deficit remains within the previously projected frame with a certain reduction of around Denar 300 million, i.e. it will account for 2.8% of GDP. Latest amendments to the Budget envisage GDP rate of – 0.6% annually, with 0.1% inflation.

&nbsp

As for the revenue side, tax revenues are lower by 5.7%, whereby the largest reduction was made at VAT by 6.5%, PIT by 2% and customs duties by 16.7%. Social contributions, within the Supplementary Budget, will increase by 2.4%.

&nbsp

Regarding the expenditure side, total wage bill and allowances are reduced by 3%, i.e. by Denar 684 million, and there are also cuts at the per diem and official trips item, amounting up to 50% at some budget users.

&nbsp

Social transfers remain unchanged, and expenditure increase is envisaged for procurement of pharmaceuticals and vaccines for the swine flu. There is no reduction regarding the payment of agricultural subsidies. Capital expenditures are lowered by 18%.

&nbsp

The reason to adopt this Supplementary Budget, being second this year, is the adjustment of the government spending to the actual situation in the economy, as well as lower revenue performance.

&nbsp

Majority in the Parliament see the Supplementary Budget as reflection of the actual situation in the economy, while according to the opposition, it offers no solution to exit the economic crisis and the goal of the Government is to collect as much funds as possible from the citizens and the private sector.

Comments are closed.

Close Search Window