Skopje, 19 June 2025 (MIA) - The Government adopted Thursday the 2025 Budget revision, with revenues projected at Mden 362.4 billion (EUR 5.9 billion) and capital expenditures at Mden 47.5 billion (EUR 772 million). The GDP growth rate stands at 3.7 percent and inflation is set at 2.8 percent.

"Total revenues are projected at Mden 362.4 billion or 1 percent more than the initial budget. The increase comes as a result of rising non-tax revenues - administrative taxes, concessions, National Bank profit etc - as well as enlargement of self-financing activities of institutions instead of full financing from Budget funds," Finance Minister Gordana Dimitrieska Kochoska told a press conference.

According to her, total expenditures are projected at Mden 403.7 billion (EUR 6.56 billion), also rising by 1 percent, owed primarily to the development component.

"Through the revision, we are reallocating funds among budget beneficiaries, funds for continued payment of salaries, primarily in the Ministry of Interior, where wages are set to rise by ten percent. In addition, funds are secured for payment of higher pensions and transitional costs, along with additional Mden 300 million (EUR 4.9 million) for capital expenditures," said Dimitrieska Kochoska.

The capital expenditures now stand at Mden 47.5 billion (EUR 772 million), with funds added for realization of advanced projects, primarily in the Ministry of Defense.

Furthermore, the financial support of municipalities would continue, with additional Mden 600 million (EUR 9.8 million) provided through reallocation.

The Budget revision aims to stimulate economic activities and achieve the projected growth rate. Therefore, the growth rate remains at 3.7 percent, as projected with the initial budget, since the 3.2-percent growth in the first quarter is a clear signal that the projection is attainable and real," said the FinMin.

Dimitrieska Kochoska expects the trend to continue in the coming period, supported through domestic consumption, more investments in infrastructure and energy, financial support of investment activity of domestic companies, but also measures to increase the household income, while considering the uncertain environment and lower demand by the country's main trading partners.

She expects inflation to stabilize and is projected at 2.8 percent, based on the consistent implementation of the regulations, such as the Law on Unfair Trade Practices, aimed at preventing unjustified price increases, especially among basic food products.

"The budget revision reaffirms the country's fiscal policy and our efforts for fiscal consolidation and proper management of taxpayers' money," said Dimitrieska Kochoska.

She added that the budget deficit remains unchanged at Mden 41.3 billion (EUR 671 million) or four percent of GDP.

MIA file photo, screenshot