North Macedonia presents 2027 draft budget with spending of €7 billion and €219 million

Finance Minister Gordana Dimitrieska Koçoska announced that the 2027 draft budget projects total revenues of 395.4 billion denars, or 5.7 percent more than in 2026. Expenditures are projected at 440.4 billion denars, equivalent to €7 billion and €219 million, representing an increase of 4.8 percent compared with the previous year.

During a press conference, the minister said the budget was drafted in an environment of uncertainty in the international economy and external risks. For this reason, she said, the focus was placed on realistic projections, sustainable spending and the most efficient possible use of public funds.

The deficit has been set at 45 billion denars, representing 3.5 percent of GDP, and is in line with the Fiscal Strategy for 2027-2031, Dimitrieska Koçoska said. She said the aim was to continue gradual fiscal consolidation, reduce the deficit and stabilize public debt without neglecting development priorities.

In the revenue category, tax revenues have been planned at 223.1 billion denars, an increase of 6.4 percent, the minister said. She added that tax policy would remain predictable, while efforts would focus on improving revenue collection, combating tax evasion and digitizing tax processes. The budget, she said, guarantees regular and uninterrupted funding for all of the state’s legal and contractual obligations.

The draft budget includes funds for public-sector wage increases and for meeting obligations related to NATO membership. Funds amounting to 2 percent of GDP have been allocated for defense, intended to strengthen defense capabilities and modernize and equip the Army.

Citizens’ social security remains one of the main priorities. A total of 220.8 billion denars has been planned for social transfers, 4.1 percent more. Of this amount, 123.8 billion denars has been allocated for pensions, an increase of 4.8 percent in line with legal adjustments.

A total of 14.3 billion denars has been earmarked for social support for the most vulnerable groups, while 2.9 billion denars will go toward employment policies and active employment measures. Funding for healthcare will be 3.9 billion denars higher than this year. Municipalities, meanwhile, will receive transfers of around 36 billion denars through block grants and VAT grants.

Capital investments are another key part of the budget, with 40.8 billion denars planned for this purpose. Dimitrieska Koçoska said the funds were intended to be directed toward projects that generate long-term value, improve infrastructure and raise the quality of public services. She emphasized that, in addition to the allocated amount, the implementation of the funds was also important, so the focus would be on the timely completion of projects and concrete results on the ground.