5 Billion Denars From Excise: A Second Budget Rebalance This Year Because of Cheaper Fuel
Mickoski confirmed 'the effect from the excise is around five billion denars,' and with the reduced VAT the total hole reaches 6-7 billion denars — the budget is heading toward a second rebalance this year, after July's deficit of 4.1% of GDP.
Prime Minister Christijan Mickoski confirmed that the measures reducing excise and VAT on fuel are costing the state treasury roughly five billion denars from excise alone, with additional millions lost from the lower VAT rate. The total effect is estimated at 6 to 7 billion denars — around €100 to €114 million.
Finance Minister Gordana Dimitrieska-Kочoska confirmed the government is weighing options between reallocating existing funds or a second budget rebalance this year, citing unexpected movements in regional energy markets as the reason for the added pressure. The first rebalance for 2026 was made on July 27, when the deficit was set at 4.1% of GDP, or 46.3 billion denars.
The reduced excise and VAT measures were introduced to protect citizens' living standards from rising fuel prices, but their cost is now directly translating into budget pressure — a textbook example of how a short-term consumer-protection measure creates a medium-term fiscal challenge that must be resolved through a new rebalance or cuts elsewhere.
MKNews Hub · Macedonia · October 5, 2026
