English
The Government has adopted the Draft Budget for 2027, which establishes the fiscal framework and development priorities for the coming year. “The primary objective is to ensure stable and sustainable public finances and to continue with gradual fiscal consolidation, while simultaneously creating conditions for economic growth, investment, and an improvement in citizens’ living standards,” stated Minister of Finance Gordana Dimitrieska Kochoska at a press conference held at the Government. She noted that the 2027 Budget was prepared amidst an uncertain international economic environment and external risks; consequently, special attention was paid to the realism of the projections, the sustainability of expenditures, and the efficient use of public funds.
“In the Draft Budget for 2027, total revenues are projected at 395.4 billion denars—an increase of 5.7 percent compared to 2026—while total expenditures are projected at 440.4 billion denars, representing an increase of 4.8 percent compared to 2026,” the Minister said.
She indicated that the budget deficit is planned at 45 billion denars, or 3.5 percent of GDP, which is in line with the Fiscal Strategy for the 2027–2031 period. “This means that we remain committed to a path of gradual fiscal consolidation, with a clear objective of reducing the budget deficit and stabilizing public debt, without abandoning our development priorities,” the Minister stated. She emphasized that capital investments represent a particularly significant component of the 2027 Budget. “A total of 40.8 billion denars is allocated for capital expenditures. Our intention is to direct these funds toward projects that generate long-term value, improve infrastructure, and contribute to higher-quality public services,” she noted.
Regarding the revenue side, Dimitrieska Kochoska pointed out that tax revenues are projected at 223.1 billion denars, representing a growth of 6.4 percent. “Tax policy will remain predictable, with a focus on improving tax collection, reducing tax evasion, and digitizing tax processes. Through the 2027 Budget, we ensure the regular and uninterrupted financing of all the state’s legal and contractual obligations,” she emphasized. The Minister pointed out that the Budget secures funds for public sector wage growth, as well as increased resources to meet obligations arising from the country’s NATO membership. Specifically, defense funding is set at 2 percent of GDP, aimed at strengthening defense capabilities, modernizing the Army, and providing it with new equipment.
Dimitrieska Kochoska added that the social security of citizens remains a key priority. She emphasized that 220.8 billion denars have been allocated for social transfers—an increase of 4.1 percent—of which 123.8 billion denars are earmarked for pension payments, representing a 4.8 percent increase in line with statutory adjustments.
Furthermore, 14.3 billion denars have been allocated for the social protection of the most vulnerable citizens, while 2.9 billion denars are planned for active employment policies and measures. Funding for healthcare has been increased by 3.9 billion denars compared to this year. Additionally, transfers to municipalities—comprising block grants and VAT-based grants—are projected at approximately 36 billion denars. Capital investments represent a particularly significant component of the 2027 Budget, with 40.8 billion denars earmarked for capital expenditures. “Our commitment is to direct these funds toward projects that create long-term value, improve infrastructure, and contribute to higher-quality public services. In this regard, it is not just the amount of planned funding that matters, but also its actual execution. Our focus is on the timely implementation of projects and on delivering concrete results on the ground,” said Dimitrieska Kochoska.
She noted that funding for the Public Enterprise for State Roads is no longer allocated within the State Budget, as the enterprise now secures these funds independently.
The Minister further clarified that, in addition to capital investments financed directly from the State Budget, the implementation of major infrastructure projects through the Public Enterprise for State Roads will continue in 2027. This includes Corridors 8 and 10d, as well as highway sections such as Kichevo–Bukojchani, Kichevo–Ohrid, and Skopje–Blace. Furthermore, efforts will continue regarding the improvement of local road infrastructure, as well as projects for the construction and modernization of railway infrastructure—including the eastern section of Corridor 8 and the Tabanovce railway border crossing.