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

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Garvanlieva Andonova V. , Nikolov M. , Velkovska I. , Petrovska A. M.

European Spatial Research and Policy

2021

tom 28

nr 2

131-146

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.