FYR Macedonian Government Adopts 2014 Budget

FYR Macedonia/March 2014

Despite rumors about changes in the taxation rates in the country, the FYR Macedonian Government approved the budget for 2014 without any changes in the taxation regime. The budget for 2014 was published in the Official Gazette No.183 of December 23 2013.

According to the budget, government incomes are estimated at around MKD 158.34 billion, whereas expenses are expected to reach MKD 176.51 billion. The budgetary deficit projected at 3.5% will be financed from domestic and foreign sources while GDP growth is expected to be 3.2%. The government estimates that the budgetary inflows from taxes and contributions will amount to about 75% of all inflows, whereas penalties are expected to bring in additional 9% of the projected incomes.

The Government has budgeted for an increase in capital investments (11% increase compared to 2013) as well as a rise in the subsidies it will provide for various projects in amount of EUR 140 million. The budget was met with a certain dose of criticism but also with a general sense of relief that the national flat tax rates remain unchanged.

Elena Kostovska
Eurofast Global, Skopje Office
elena.kostovska@eurofast.eu
Tel. +389 2 2400225
www.eurofast.eu