Prime Minister Hristijan Mickoski said that a decline in revenue from excise duties and value-added tax could lead to a second budget rebalancing within this year.

Government projections indicate that a shortfall of 6 to 7 billion denars could emerge by the end of the year, an amount estimated at approximately 97 to 113 million euros. According to Mickoski, the decline in revenue is a consequence of measures taken to reduce excise duties and VAT, aimed at easing the impact of rising fuel prices.

“We expect to be short 6–7 billion denars by the end of the year compared with what we planned, and for this reason it is possible that we will have another rebalancing by the end of the year,” Mickoski said in response to journalists during the inauguration of the renovated “Stiv Naumov” student dormitory in Skopje.

Speaking about inflation, the prime minister said that no major change in its trend had been recorded in the country. He added that over the past two months, the inflation rate had been lower than the European average./Telegrafi/

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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.

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