2027 budget proposal: revenue of 395.4 billion denars, spending of 440.4 billion, deficit of 3.5 percent of GDP

At its session on October 30 the government adopted the 2027 Budget Proposal, and Finance Minister Gordana Dimitrieska-Kočoska presented it at a press conference. The budget foresees revenue of 395.4 billion denars, spending of 440.4 billion and a deficit of 45 billion denars, or 3.5 percent of GDP. The news was carried by 360 Stepeni, Sitel, Lokalno, Plusinfo, Expres and other outlets. The proposal has yet to reach the Assembly, which is currently debating the second rebalance of the 2026 budget. When exactly it will be put on the agenda is not stated.

Revenue. Total revenue is 395.4 billion denars, or 5.7 percent more than in 2026. Tax revenue is 223.1 billion denars, up 6.4 percent. The minister expects excise revenue to rise by 1.5 billion denars, mainly from tobacco and alcohol.

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Spending. Spending is 440.4 billion denars, or 4.8 percent more than this year. Pensions are allotted 123.8 billion denars, which is about 28 percent of total spending (our calculation). There are funds for public sector wage growth and additional money for health care, but the amounts are not stated. Defence is allotted 2 percent of GDP.

Capital spending. Investment is 40.8 billion denars, or about 9.3 percent of total spending (our calculation). The reports we checked do not publish a list of projects covered by this sum.

Debt and financing. Debt servicing obligations are 124.6 billion denars, of which 46.5 billion is for external debt. Next year the 500 million euro Eurobond issued in 2023 falls due. According to a headline on the portal Time.mk, a new Eurobond is therefore expected in the first quarter of 2027, and the amount is not stated. Financing foresees domestic borrowing of 36.3 billion denars, another 60 billion denars in one-year treasury bills and foreign borrowing of 86.8 billion. Public debt, according to the minister, will be below 60 percent of GDP in both 2026 and 2027.

Assumptions. Growth of 3.8 percent and inflation of 3.2 percent are projected. The minister stated that global inflation is projected at 4.1 percent. For comparison, annual inflation in Macedonia in September was 2.7 percent, according to the State Statistical Office, so the 2027 projection is higher than the current level.

What is not published. The amount for wages and for health care is unknown, as is the amount of the new Eurobond and the list of capital projects. It is also unclear when the proposal will reach the Assembly.

What to follow. First, whether a detailed overview of capital projects will be published. Second, how much the borrowing will cost, because debt servicing of 124.6 billion denars is almost the same as pensions of 123.8 billion. Third, whether the growth projection of 3.8 percent changes during the debate in the Assembly.

MKNews Hub · Macedonia · October 31, 2026