October 17 (SeeNews) - Macedonia's parliament on Monday adopted the 2017 government budget which envisages deficit of 18.6 billion denars ($332.9 million/302.2 million euro) equivalent to 3% of the country's gross domestic product (GDP), the finance ministry said.
Budget revenues are projected at 187.6 billion denars, which represents an increase of 7.6% compared to 2016.
Budget expenditures are planned to increase by 4.5% year-on-year to 206.2 billion denars, the finance ministry announced on its website.
The budget bill was adopted in a 72-37 vote in the 123-seat parliament, the ministry said.
The budget bill envisages GDP growth of 3% in 2017, as compared to 2.3% projected for 2016.
Annual inflation iis set at 1% next year.
The planned 2017 budget deficit is lower than the shortfall of 23.1 billion denars projected in the latest revision of Macedonia's 2016 budget. The 2016 budget gap is equivalent to 4% of GDP.
Macedonia's government led by conservative VMRO-DPMNE party plans record high capital investment of 26.95 billion denars next year, a 20% increase on 2016. The planned investment will back the construction of Demir Kapija - Smokvica motorway section, as well as the modernisation of the railway section of transport Corridor 10 in Macedonia, and the reconstruction of the railway to neighbouring Bulgaria, the finance ministry said.
"We expect growth to be boosted next year by exports, which are projected to increase by a real 6% due to increased export activity of the free industrial zones," finance minister Kiril Minoski said.
"The growth of exports is expected to be accompanied by a further improvement of its structure through an increase of the share of products with higher value added," he also said. "The import of goods and services is projected to grow by a real 4.7% in 2017," the minister added.
($=61.5462 denars)