Page 34 - Ekonomija i Biznis_noemvri 2015.indd

ECONOMY

Government Budget, General Government there is no explanation what that means. Also,
Budget (Central Government Budget, Funds and the items “Contractual services” and “Other
municipalities) is also published. Macedonian current expenditures”, which account for 40% of
Budget, however, is still being prepared according the total expenditures for goods and services, are
to the old methodology (GFS-1986), and the presented without any additional explanation.
regular excuse is that the Ministry of Finance
does not have sufficiently trained personnel to Furthermore, because in our budgets revenues
implement the new methodology (GFS-2001). It is and expenditures equal cash inflows and outflows,
clear that these are fairytales for little kids, where the depreciation is not treated as expenditure (as
the real reason is the fundamental difference we it does not cause cash outflow), although even the
mentioned above: GFS-1986 enables you to hide high schoolers know that it is not right, because
the due unpaid liabilities and to show a smaller the buildings, the vehicles and the computers are
being depreciated and that expenditure must be

in Macedonia the General Government Budget is published only annu-
ally, and only by key items, without a detailed classification of revenues
and expenditures. For example, in the Expenditure Statement for 2014 it
is stated that approximately 11 billion denars are spent within the item
“Other transfers”, but there is no explanation what that means

budget deficit. What makes the matters even recorded together with the other expenditures.
worse is that all the rules that are implemented Another important example of absence of
in the preparation of the Macedonian Budget
are not even in line with GFS-1986, i.e. we play compliance with the international standards is
by certain rules of ours. As the public does not the case of capital revenues and expenditures.
have the right to know how the state budget In our case, purchase of equipment, furniture,
is compiled, the Ministry of Finance does not vehicles or inventory of goods is presented as
provide anywhere any additional methodological capital expenditures, contrary to the GFS-2001
explanations about the budget preparation. where these transactions are not expenditures,
but are presented separately as transactions with
It is interesting to mention that even the non-financial assets and liabilities. This difference
Macedonian Law on Budget Accounting requires is very important, because transactions with non-
four reports to be published: Revenue Statement, financial assets and liabilities enable us to assess
Expenditure Statement, Balance Sheet and the operational efficiency in the functioning of the
Consolidated Statement, but due to “unknown” Government and sustainability of its operations.
reasons the Ministry of Finance does not publish
the Balance Sheet. I say “unknown”, because if To conclude, lack of transparency is always
the Balance Sheet is compiled then the amount linked with the desire to hide something that
of due unpaid liabilities will have to be stated does not look nice. That is why all the shady
and we will not need to look like school kids at personalities (businessmen or politicians) do not
Stavreski, waiting for him to show mercy and tell like international standards and methodologies,
us what is the amount of unpaid obligations of i.e. the reason is very simple: if you play by
the Ministry or tell us that the Ministry has paid strict and clear rules, you have no room to keep
all the liabilities to the business sector. something in the dark. And, our politicians are
doing exactly that: from the position of being
Macedonian public finances are problematic in power, they can just allow themselves not to
on other grounds, too. For example, in Macedonia pay to the private firms for purchased goods or
the General Government Budget is published only completed construction works, and firms have
annually, and only by key items, without a detailed nothing to do but to suffer from this. Hence,
classification of revenues and expenditures. For clear, strict and obligatory rules, together with
example, in the Expenditure Statement for 2014 the public control of the government, are the only
it is stated that approximately 11 billion denars mechanisms with which we can tie the hands of
are spent within the item “Other transfers”, but irresponsible politicians.

34 November 2015