Annual Budget Report before the MPs, realized growth higher than the projected one

Skopje, 29th June 2016 (MIA) – Fiscal projections envisaged for 2015 are realized, some of the indicators are even overperformed. Growth higher than the projected one was achieved, export grew in relation to import, while unemployment rate of 24.6% was at the lowest level so far.

These are data presented in the 2015 Annual Budget Report, which the Minister of Finance, Kiril Minoski, elaborated on today before the members of the parliamentary Financing and Budget Commission.

He underlined that 3.7% growth was realized last year, being the highest in the region and one of the best performances compared to the EU Member States.

- Economic growth was attributable to the increase of both the export and the consumption, as well as the fiscal support through the budget expenditures related to infrastructure projects, which resulted in high growth of the construction activity, Minoski said.

Export grew by 4.6% as a result of the operations of companies in the free economic zones, industrial production also experienced growth, mainly due to the increased production in the free economic zones and the substantial growth realized in the production of motor vehicles and machines. Unemployment was reduced to the lowest level so far, which, as Minoski pointed out, was a result of the investments by foreign investors in the free economic zones and the government active employment measures.

Total budget revenues amounted to Denar 161 billion, the expenditures were in the amount of Denar 180 billion, while the budget deficit amounted to Denar 19 billion.

Government debt, as Minister Minoski underlined, was at a moderate level, accounting for 38% of GDP.

- As a result of prudent and successfully conducted fiscal policy in the past years, Republic of Macedonia remains to be moderately indebted country with government debt accounting for 38% of GDP at the end of 2015, being lower than the criterion set in the Maastricht Treaty, according to which it may not exceed 60% of GDP. The fact that only four states in the European Union had lower government debt than the Republic of Macedonia at the end of 2015 speaks in favour of this, Minoski pointed out.

According to VMRO-DPMNE MPs, Annual Budget Report confirmed the successful economic policies implemented last year, however, as they underlined, deliberately created political crisis would reflect on 2016 fiscal indicators.

- Unfortunately, considering the political crisis, growth realized in 2015 will not be attained in 2016. The main culprit of the whole current situation is the opposition, which is wittingly going towards bringing down all segments of the state, in particular the development of the Macedonian economy, VMRO-DPMNE MP Krsto Mukoski said.

Annual Budget Report is to be also considered at a plenary session of the Assembly of the Republic of Macedonia.