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Budget revenues increase in July for first time since COVID-19 outbreak

The first growth of budget revenues has been registered in July since the COVID-19 outbreak which indicates that the economic recovery is moving at a good pace, the Ministry of Finance told Tuesday.

Skopje, 4 August 2020 (MIA) – The first growth of budget revenues has been registered in July since the COVID-19 outbreak which indicates that the economic recovery is moving at a good pace, the Ministry of Finance told Tuesday.

“In July, the total revenue collection totalled Mden 17.9 billion. Tax revenues were collected in the amount of Mden 10.2 billion or 1.7% less than last year. For the first time since the beginning of the COVID-19 outbreak, the Value Added Tax (VAT) revenue has been increased by 1.2% compared to last year, following the decline in June of 7.5%, and the high drop in May and April of -33 and -43.5 percent respectively,” Finance Ministry’s press release read.

High growth of import duties of 18.3% has been registered, personal income tax has increased to 0.4%, while collection of excise tax and profit tax has declined, Finance Ministry said.

“Contributions have increased by 11.9% compared to the same month last year, which continues the positive trend of collecting personal income tax revenues from June, when growth rate of 12.3%. The increase of this portion of revenues is largely due to government measures to support the payment of wages in April, May and June,” press release read.

Revenues from contributions have increased by 8.6% compared to the same period last year, and as of the first half of the year they increased by 8%. As of July, the expenditures saw an increase of 11.6% at annual level, press release said, adding that the budget deficit stands is 4.76% of GDP and is in line with the budget rebalance projections.

“Despite the Macedonian economy is facing challenges in coping with COVID-19, budget execution is proceeding according to plan. The first growth of budget revenues of 1.4% has been registered in July since the COVID-19 outbreak which indicates that the economic recovery is moving at a good pace. The purpose of the Ministry of Finance is to ensure continuous budget execution, without any delay, within the legally set deadlines, i.e. payment of wages to the employees, timely payment of allowances to the socially vulnerable categories, prevention of accumulation of arrears, as well as timely VAT refund. This also includes the COVID-19 – related measures, support the state provides to citizens and companies, in accordance with the possibilities, through the domestic payment card, the subsidized wages and contributions, as well as the deferred payments of tax liabilities,” Finance Minister Nina Angelovska said.

The domestic economy is expected to gradually recover in the third and the fourth quarter and revival of economic activity will continue at an intensified pace.

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