According to the Budget, government incomes are estimated at around MKD158 billion ($3.5 billion), whereas expenses are expected to reach MKD176 billion. The budgetary deficit projected at 3.5% will be financed from domestic and foreign sources while GDP growth is expected to be 3.2%. The government estimates that the budgetary inflows from taxes and contributions will amount to about 75% of all inflows, whereas penalties are expected to bring in additional 9% of the projected incomes.
The government has budgeted for an increase in capital investments (11% increase compared to 2013) as well as a rise in the subsidies it will provide for various projects in amount of €140 million ($192 million). The budget was met with a certain dose of criticism but also with a general sense of relief that the national flat tax rates remain unchanged.
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