## IMF Publishes Fiscal Transparency Evaluation for Macedonia

_IMF News, October 29, 2018_

## Source details

**Canonical URL:** [IMF Publishes Fiscal Transparency Evaluation for Macedonia](https://www.imf.org/en/news/articles/2018/10/29/pr18396-imf-publishes-fiscal-transparency-evaluation-for-macedonia)

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## Bibliographic details
- Published: October 29, 2018

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### Assessment findings
- Report publication date: October 29. 2018
- Press Release No. 18/396
- The evaluation was carried out in May 2018 by the IMF’s Fiscal Affairs Department, in conjunction with the Statistics Department, at the request of the Government of Macedonia.
- Assessed against the standards of the Fiscal Transparency Code:
  - Macedonia meets the standard of good or advanced level practice on 13 of the 36 principles assessed.
  - Macedonia meets the basic practice on a further 12 principles.
  - In 5 areas where Macedonia’s transparency practices do not currently meet basic practice, the report finds these could be readily addressed by publishing data that are already collected for internal management purposes.

### Key strengths identified
- Fiscal reports cover the bulk of general government activities and are published in a frequent and timely manner.
- Budget documentation:
  - Presents medium-term macroeconomic and fiscal projections.
  - Is prepared in accordance with a clear legal framework for budget formulation.
- Several risks to the public finances are disclosed, including for macroeconomic risks, public debt, and explicit guarantees.

### Areas for improvement
- Fiscal reports could be made more comprehensive by:
  - Expanding coverage to several entities currently treated as being outside of general government.
  - Presenting more complete balance sheet information.
  - Disclosing the fiscal costs of tax expenditures.
- Budget documentation should:
  - More accurately report taxes levied by the government and allocated to other entities.
  - Present information on the own-source activities of extra-budgetary funds.
  - Present medium-spending plans of budget entities.
  - Present the performance of key policy areas.
  - Present more complete information on public investment projects.
- Publishing a comprehensive summary report on fiscal risks could help ensure policymakers and the public better understand risk exposures and facilitate improved monitoring and management of them.

### Key recommendations
- Expand the institutional coverage of fiscal and statistical reports by classifying institutional units in line with international standards.
- Regularly publish balance sheet information and estimates of revenues forgone from tax expenditures.
- Present, in the budget documentation, more comprehensive information on extrabudgetary units and classify all taxes levied by the government in line with international standards.
- Regularly report on compliance with medium-term fiscal objectives and enhance reporting against performance indicators for key policy areas.
- Include in the budget documentation medium-term spending plans for budget organizations, and the total costs of investment projects.
- Publish a summary fiscal risk report discussing the size and nature of specific fiscal risks, and strategies for their management.
- Strengthen monitoring and oversight of fiscal risks arising from public-private partnerships and public corporations.

### Implementation and outlook
- The Macedonian authorities have placed improving the quality and transparency of public institutions at the core of its medium-term public financial management reform strategy.
- The implementation of reforms recommended in this report, in addition to those already planned, will result in further improvements in fiscal transparency in Macedonia in the coming years.

### Contacts and further information
- IMF Communications Department — MEDIA RELATIONS
- PRESS OFFICER: Phone: +1 202 623-7100 Email: MEDIA@IMF.org
- Further information about the IMF’s Fiscal Transparency Code and Macedonian Fiscal Transparency Evaluation can be found at: http://www.imf.org/external/np/fad/trans/

*Source: IMF Press Release No. 18/396 (October 29. 2018).*

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## References

- [Republic of North Macedonia and the IMF](http://www.imf.org/external/country/MKD/index.htm)
- [Fiscal Transparency](https://www.imf.org/external/np/fad/trans/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [http://www.imf.org/external/np/fad/trans/](http://www.imf.org/external/np/fad/trans/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/10/29/pr18396-imf-publishes-fiscal-transparency-evaluation-for-macedonia_