North Macedonia Government adopts 2027 budget proposal

The North Macedonian government has adopted the proposed budget for 2027, establishing fiscal frameworks and development priorities for the upcoming year. Finance Minister Gordana Dimitrieska-Kocoska announced that the budget aims to ensure stable public finances and gradual fiscal consolidation while fostering economic growth and improving living standards.

Total revenues are projected at 395.4 billion denars, a 5.7 percent increase compared to 2026, while total expenditures are planned at 440.4 billion denars, up 4.8 percent. The budget projects a deficit of 45 billion denars, representing 3.5 percent of the Gross Domestic Product (GDP). These projections are based on an expected real economic growth of 3.8 percent and an inflation rate of 3.2 percent.

Key allocations include 123.8 billion denars for pensions, representing a 4.8 percent increase, and 220.8 billion denars for social transfers. Capital expenditures are set at 40.8 billion denars, targeting infrastructure and long-term value projects. Additionally, 14.3 billion denars are earmarked for protecting vulnerable citizens, and 3.9 billion denars are allocated for healthcare compared to 2026 levels.