Budget of the Republic of Macedonia – Annual plan for financing the functions and obligations of the state, and consists of an annual assessment of revenue and expenditure on purposes. Revenues and expenditures in the budget are foreseen and approved for the next period, as a rule for one year, which is called a budgetary or fiscal year. According to the Macedonian budget legislation, the budget year coincides with the calendar, ie it starts at 1. and ending 31. ⅻ. The budget is adopted by the Assembly of the Republic of Macedonia. In that sense, the budget is an act with legal and administrative force. It arises the authorizations and obligations for the bodies of the executive, which carry out the budget, to realize the revenues provided by the budget and carry out the expenditures in the amount and for purposes of the budget. In the budget of the Republic of Macedonia, the figures for revenues and expenditures are stated according to a pre-established classification, and their scope is harmonized with the economic policy and material opportunities of the country. The Budget of the Republic of Macedonia consists of the funds of the users in the field of legislative, executive and judicial power, that is, the budget of the central government, as well as the budgets of: the Pension and Disability Insurance Fund, the Health Insurance Fund, the Water Fund, the Water Fund, the Fund For protection and promotion of the environment and nature and the Employment Agency of the Republic of Macedonia. According to the scope, the Budget of the Republic of Macedonia is the type of consolidated budget covering the budget of the central government and budgets of other public bodies that are holders of public functions and have certain financial autonomy (separate revenues, etc.). In the terminology of public finances, this type of budget is known under the name “consolidated budget of the central state”. Revenues on the central state budget budget are provided by: a) taxes (profit tax, personal income tax, value added tax, excise taxes); b) customs and other duties from international trade and transactions; c) fees; d) non-taxable income; e) donations received from the country and abroad; f) other revenues realized in accordance with the law. In addition, budget revenues are both loans from the country and abroad, which finances the budget deficit. Revenues on the budgets of the funds, as an integral part of the Budget of the Republic of Macedonia, are provided by: contributions (from salaries), fees, transfers from the central government budget, donations from the country and abroad and other revenues acquired in accordance with the law. Expenditures of the Budget of the Republic of Macedonia consists: a) Current expenditures (salaries, rents and fees, expenditures for goods and services, current transfers and interest payments); b) capital expenditures (procurement of capital assets and capital transfers); c) giving loans and means of purchasing securities; and d) repayment of the principal of the internal and external debt. The deficit of the Budget of the Republic of Macedonia is financed by taking loans from the country (through emissions of short-term securities, i.e. treasury bills, and recently on government bonds) and abroad. The financial assets of the Budget of the Republic of Macedonia manages the Treasury, which is within the Ministry of Finance. The total revenues of the Budget of the Republic of Macedonia participate with 35.5% in the gross domestic product in 2005. Tax revenues, covering taxes on the central government budget and the contributions of the funds (PIOM, for health and employment) cost almost 84% of the total revenues of the Budget of the Republic of Macedonia in 2005. Only the tax revenues of the central state power cost 55% of the total budget revenues of the Republic of Macedonia for 2005. Among the individual taxes, the most important role have: value added tax, excise taxes and personal income tax. Only taxes on consumption (VAT and excise taxes) have a share of almost 70% in tax revenues, or 13.7% in GDP, which is included in countries with the highest representation of these taxes in the world. The high share of consumption taxes, from the aspect of the economic effects of savings and investments, is economically justified, but from a social and political aspect is inconvenient due to the regressive effects of these taxes. In the structure of total expenditures, current expenditures with almost 90% in 2005 have dominant participation. The largest expenditure items in 2005 are salaries and fees (22.8%) and social transfers (46.8%). Capital expenditures in 2005 They registered a share of only 10.2% in the total expenditures of the Budget of the Republic of Macedonia, which speaks of the unfavorable structure of the total budget expenditures, which, as such, is not in the function of encouraging economic growth. An important feature of the Budget of the Republic of Macedonia is the situation with the budget deficit. Starting in 1993, fiscal policy was aimed at achieving a sustainable fiscal position in this regard. Measures of fiscal consolidation, which were mainly undertaken in the sphere of budget expenditures, contributed to the budget deficit in the period 1995-1998 to be maintained at level to 2% of GDP. After the conflicting years (2001 and 2002), when budget deficits increased sharply (7.2% and 5.7% of GDP, respectively), in 2003. Public finances were consolidated, so in this year the deficit decreased to 1.7% of GDP, and in the coming years, as of 2005, it descended below 1% of GDP (ie 0.6% in 2005) . Exhibition, Ministry of Finance of the Republic of Macedonia, “Newsletter”, 11-12, 2006. Livko Atanasovski, Public Finance, Faculty of Economics, Skopje, 2004. J. A.
Original article in Macedonian language Cyrillic alphabet
Кириличен напис БУЏЕТ НА РЕПУБЛИКА МАКЕДОНИЈА