Government approved the 2026 budget revision

At the proposal of the Ministry of Finance, the Government of North Macedonia today approved amendments and supplements to the 2026 budget, aligning budget projections with current economic developments and securing additional funds to meet the state’s development priorities.

At a press conference held at the Government, Finance Minister Gordana Dimitrieska-Koçoska said the revision had been drafted amid uncertain global economic and geopolitical circumstances, driven by rising energy prices, movements in international markets and conflicts in certain regions. According to her, despite these challenges, the Macedonian economy is showing resilience and continues to maintain positive trends.

She said that under the revision, total revenues are being revised to 379.2 billion denars compared with the initial 2026 budget, while tax revenues remain almost at the originally planned level and are projected at 213.2 billion denars.

“Through the budget revision, we are ensuring the stability of public finances while at the same time creating room for more investment, greater economic activity and higher-quality services for citizens. Even in conditions of global uncertainty, we remain committed to the responsible management of public funds and support for development,” Dimitrieska-Koçoska stressed.

On the expenditure side, the minister explained that total expenditures have been revised to 425.2 billion denars. Compared with the level initially planned, the additional funds will be directed toward clearly defined priorities, including agricultural subsidies, support for rail transport, sports, the living standards of students and pupils, as well as additional assistance for categories of citizens in need through social benefits, soup kitchens and deinstitutionalization measures. The budget deficit has been revised to 46.1 billion denars, or 4.1% of GDP.

According to Dimitrieska-Koçoska, for the first time the increase in the deficit is mainly the result of higher capital spending and infrastructure investments.

“It is especially important that the budget revision secures additional funds for capital investments. They amount to around 46 billion denars and are increasing by around 5.8 billion denars, or 14.5%, compared with the initial budget. We are not talking about a deficit that finances current consumption, but one that finances development,” Dimitrieska-Koçoska stressed.

The additional funds will be used to implement capital projects of strategic importance for the state, such as the construction of Corridor 8 and Corridor 10d, the Shkup – Bllacë motorway, the construction of Railway Corridor VIII, investments in water supply and sewerage systems, wastewater treatment plants, waste management systems, energy efficiency projects, the construction and reconstruction of schools, kindergartens and student dormitories, as well as investments in rural development and the modernization of agriculture.

The minister also underlined that there will be a significant increase in funds for capital projects in municipalities as well, through investments in local road and municipal infrastructure, as well as in educational and sports facilities, with the aim of ensuring balanced regional development and a better quality of life for citizens across the country.

The budget deficit and debt repayment obligations, with a total value of 76.4 billion denars, will be covered through a combination of domestic and external borrowing. Of this amount, more than 54 billion denars are earmarked for the regular servicing of obligations to foreign creditors, while around 20 billion denars are intended for the repayment of domestic debt.