Macedonia's Parliament passed Friday the 2012 budget with 63 votes in favor and 36 against. Next year's  budget is projected at Denar 169 billion, with revenues at Denar 157 billion and a deficit equivalent to 2,5% of the Gross Domestic Product (GDP).

The GDP growth is projected at 4,5 per cent along with a 2,5 per cent annual inflation rate. Capital investments are projected to increase by 29 per cent.

Key goals of the projected budget is retaining positive rates of economic growth, improvement of economic infrastructure and maintaining high level of social stability.

Deputy PM and Finance Minister Zoran Stavreski has said that the 2012 budget is prepared in conditions of aggravated situation in European and Macedonian economy and that in these circumstances the budget's basic function will be retaining positive rates of economic growth, improvement of economic infrastructure and maintaining high level of social stability.

The minister deems the budget contains elements of flexibility and adaptability and that the main factor of confidence towards next year's fiscal policy is maintaining a budget deficit below 3 per cent in line with recommendations stemming from the EU Stability and Growth Pact.

The expenditure will be stable but at higher level compared to 2009 and 2010. This will be supported by government's stability policies mainly through on time payment of salaries, pensions and allowances. More funds have been earmarked for the education, health care and infrastructure, including a construction of free economic zones.

Existing taxes are maintained at unchanged level. Macedonia will have lowest rate of personal income tax of 10 per cent and profit tax of zero per cent if the profit is reinvested or is kept for further investments.