Page 54 - Ekonomija i Biznis_oktomvri 2016.indd

РECУБOРNИOКMАY

Pavle Gacov

The author is President
of the Assembly of

Accountants’ Association of
the Republic of Macedonia

Planned growth by 10 percent of the tax revenues for 2017 – reality or a wishful thinking

Budget 2017
ante portas

Company balance compared to In companies, the income state-
a state budget – similarities ment has the following matrix:
and expenses
Revenues minus expenses = finan-
There is no coincidence in econom- cial result (profit/loss)
ics – the direction of movement of
trends can always be predicted. The The matrix is similar in the budget:
success of predictions of the eco- Revenues minus expenses = deficit/
nomic parameters is a special story. surplus
It often depends on the knowledge Although it is a matter of the
of the predictor, however also on same matrix, one should have in
the wish to demonstrate desired pa- mind that the income and expenses
rameters regardless of the trends. It in companies are registered on an
seems that precisely in such a “vise” accrual basis (received/issued docu-
of knowledge and wishes, the Mace- ments – invoices, etc.), regardless of
donian budget for 2017 was created. the moment of their payment/collec-
tion, and in the budget only the paid
In functional terms, the budget is amounts are expenses/costs, and the
a business plan of the country, that collected amounts are revenues.
is, it is a state income statement pre-
pared on a cash basis. Off the cuff or through an
“econometric” model!?
In order to illustrate what is indi-
cated above, let us compare the equa- How are numbers in the
tion of the campaign’s income state- Macedonian market created?
ment and the budget:

In companies, the income statement has the following matrix:
Revenues minus expenses = financial result (profit/loss)
The matrix is similar in the budget:
Revenues minus expenses = deficit/surplus

54 October 2016