North Macedonia’s 2025 Budget Revenues Fall Short By Around €500 Million

Weak Capital Project Execution Continues To Weigh On Fiscal Performance

Budget revenues in North Macedonia in 2025 reached 92.09% of the revised plan, according to data from the Ministry of Finance, leaving a gap of roughly €500 million compared to projections. A total of €5.46 billion was collected, while the rebalanced budget had anticipated close to €6 billion in revenues, pointing to persistent challenges in budget execution.

On the expenditure side, realization stood at 93.01%. Public spending amounted to €6.14 billion, versus a planned €6.6 billion, again resulting in a shortfall of nearly €500 million.

Experts have repeatedly warned that the main reason for underspending lies in the poor implementation of capital projects, a long-standing issue in North Macedonia’s public finance management.

According to the Public Revenue Office, €4.426 billion entered the budget from taxes and social contributions in 2025, which is €308.3 million more than in 2024. Tax revenues rose by 7.5% to €2.334 billion, supported by strong VAT collection and higher corporate income tax inflows, while social contributions increased by 7.5% year-on-year to €2.092 billion.

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