Expenditure cuts between Denar 4 billion to Denar 4.5 billion and projections on growth of gross domestic product in 2009 of – 0.6% are envisaged in the draft Supplementary Budget, to be discussed at Government session on 1st September.

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Vice Prime Minister and Minister of Finance Zoran Stavreski announced this afternoon that revised GDP data were made in line with the latest data on industrial production and other developments in the real sector.

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– Ministry of Finance will propose to the Government GDP projections of – 0.6% in 2009, meaning a negative growth, and our expectations are that around two percentage GDP decline was realized in the second quarter. Third quarter will show slightly better performance, whereby we also expect negative growth, but lower one of around 1 – 1.5 percent. We expect for the Macedonian economy to exit recession at the end of this year, i.e. in the last quarter of 2009, projecting a growth of around 1.5%. All this will provide for GDP of – 0.6% for this year, Stavreski pointed out in his statement.

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With respect to expenditure cuts, it is proposed for such cuts to be between Denar 4 billion to Denar 4.5 billion.

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– This is significant lowering of the budget expenditures, and we believe the Budget will contribute to eliminating the macroeconomic risks and will adjust to the global economic crisis. Almost all budget items will experience cuts, as well as goods and services and capital expenditures, Stavreski emphasized.

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He also added that certain non-productive items, such as journeys, phone phone-related costs, will be lowered, and certain projects, such as the one for procurement of buses, will be realized next year.(MIA)

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