Economic growth agenda: The effects of full utilisation of capital budgets among statistical planning regions in North Macedonia

Vesna Garvanlieva Andonova; Marjan  Nikolov; Ivana  Velkovska; Ana Marija  Petrovska

doi:10.18778/1231-1952.28.2.07

Authors

Vesna Garvanlieva Andonova Center for Economic Analyses (CEA), blvd. Jane Sandanski 63/3, 1000 Skopje, Republic of North Macedonia https://orcid.org/0000-0002-0735-1781
Marjan Nikolov Center for Economic Analyses (CEA), blvd. Jane Sandanski 63/3, 1000 Skopje, Republic of North Macedonia https://orcid.org/0000-0002-7902-0316
Ivana Velkovska Center for Economic Analyses (CEA), blvd. Jane Sandanski 63/3, 1000 Skopje, Republic of North Macedonia https://orcid.org/0000-0002-2114-2142
Ana Marija Petrovska Center for Economic Analyses (CEA), blvd. Jane Sandanski 63/3, 1000 Skopje, Republic of North Macedonia https://orcid.org/0000-0001-5067-9849

DOI:

https://doi.org/10.18778/1231-1952.28.2.07

Keywords:

regional development, infrastructure, external debt, North Macedonia, capital expenditure, public investments

Abstract

North Macedonia can improve its economic growth by addressing the infrastructure gap by at least full capital budget utilisation. The outturn/execution of capital budget expenditures is low and in relative terms decreasing. The planned public finances for regional balanced development are also low and non-compliant with the legally set levels. A test of several hypothetical scenarios of full capital budget utilisation it is expected to positively contribute to the economic growth immediately and in the period to follow. Even if total debt increases in nominal terms, in relative terms the debt-to-GDP on a longer-run reduces through generating additional economic output.

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