Country Fact Sheet Government at a Glance Western Balkans 2020 North Macedonia has experienced the largest change in the government revenue mix Between 2013 and 2018, the contribution of taxes to the general government revenues mix has increased by 6 p.p. – from 58.7% to 64.7%. North Macedonia also had a change in the tax mix, with an increased contri- bution of excise and profit taxes, and a decline in the VAT contribution, given the wide range of products that are exempted, such as road tolls. Chapter 2: Public finance and economics 2.9. Structure of general government revenues, 2018 2.10. Change in the structure of general government revenues, 2011 to 2018 North Macedonia considers fewer fiscal risks than most peers in the Western Balkans Macroeconomic shocks, changes in debt interest rates and government guarantees are the fiscal risks consid- ered, measured and disclosed in North Macedonia. While not all other governments in the region measure them and disclose them, other risks such as demographic changes, government litigations, public private partnerships and risks associated to state-owned enterprises are commonly considered as fiscal risks by other governments in the Western Balkans region. Chapter 5: Budgeting practices and procedures 5.3. Identification, measurement and disclosure of sources of fiscal risks, 2019 North Macedonia is the regional frontrunner in supporting favourable environment for businesses According to the World Bank’s ease of doing business index, North Macedonia scored 81 in 2020, which was higher than the OECD and OECD-EU averages of 77 and 78. Among the factors that constitute the index, North Macedonia excels in the area of paying taxes. For businesses in North Macedonia, it takes an average of 119 hours per year to deal with tax forms, whereas the Western Balkan regional average was 244 hours. Chapter 9: Core government results 9.7. Ease of doing business score, 2020 9.9. Number of tax payments and time spent paying taxes, 2020 North Macedonia
Transcript
Country Fact Sheet
Government at a GlanceWestern Balkans 2020
North Macedonia has experienced the largest change in the government revenue mix
Between 2013 and 2018, the contribution of taxes to the general government revenues mix has increased by 6 p.p. – from 58.7% to 64.7%. North Macedonia also had a change in the tax mix, with an increased contri-bution of excise and profit taxes, and a decline in the VAT contribution, given the wide range of products that are exempted, such as road tolls.
Chapter 2: Public finance and economics
2.9. Structure of general government revenues, 20182.10. Change in the structure of general government revenues, 2011 to 2018
North Macedonia considers fewer fiscal risks than most peers in the Western Balkans
Macroeconomic shocks, changes in debt interest rates and government guarantees are the fiscal risks consid-ered, measured and disclosed in North Macedonia. While not all other governments in the region measure them and disclose them, other risks such as demographic changes, government litigations, public private partnerships and risks associated to state-owned enterprises are commonly considered as fiscal risks by other governments in the Western Balkans region.
Chapter 5: Budgeting practices and procedures
5.3. Identification, measurement and disclosure of sources of fiscal risks, 2019
North Macedonia is the regional frontrunner in supporting favourable environmentfor businesses
According to the World Bank’s ease of doing business index, North Macedonia scored 81 in 2020, which was higher than the OECD and OECD-EU averages of 77 and 78. Among the factors that constitute the index, North Macedonia excels in the area of paying taxes. For businesses in North Macedonia, it takes an average of 119 hours per year to deal with tax forms, whereas the Western Balkan regional average was 244 hours.
Chapter 9: Core government results
9.7. Ease of doing business score, 20209.9. Number of tax payments and time spent paying taxes, 2020
Country value in green (not representedif not available)
Average of OECD countries
in blue
Range of Western Balkan countries values in grey
OECD
Public Finance and Economics
Sources: Data for the WB countries: IMF World Economic Outlook (database). Data for the OECD and the EU28 averages: OECD National Accounts Statistics (database)
Values have been rounded.
n.a. refers todata not available
Average of Western Balkan countries in
purple
WesternBalkans
Government investment (2017)Government gross debt (2018)% of GDP
40.5% 100%
0%North
Macedonia
90%10% 110%30% 50% 70%
108.6%49.4%
WesternBalkans OECD
6.2%North
Macedonia
20%0% 25%5% 10% 15%
7.9%11.9%
WesternBalkans OECD EU-28
6.2%
Sources: IMF Government Finance Statistics (database). Data for the OECD and the EU28 averages: OECD National Accounts Statistics (database)
Gender equality in public sector employment (2018)
41.0%North Macedonia
20% 30% 40% 50% 60% 70%
60.2%40.9%WesternBalkans OECD OECD-EU 61.8%
Budgeting Practices
Formal powers of the legislature to amend executive budget proposal
(2019)
Source: OECD (2019) Survey for the Western Balkans on Budget Practices and Procedures
Macroeconomic
shocks
Considereda riskMeasured /estimated
Change indebt interest
ratesEnvironmentaldegradations
Disclosed
Public-Private
PartnershipsState-ownedenterprises *
WesternBalkans
OECD
n.a.
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n.a. n.a.NorthMacedonia
Source: International Labour Organization ILOSTAT database
% of women
EU
Average of EU countries in
orange
% of total government expenditures
Unrestricted
Within totalde�cit/surplusproposed bythe Executive
33.3%
50%WesternBalkans
Mixed16.7%
Within total de�cit /surplus proposedby the Executive
NorthMacedonia
Source: OECD (2019) Survey for the Western Balkans on Budget Practices and Procedures
Sources: Data for the WB countries: IMF World Economic Outlook (database). Data for the OECD average: OECD National Accounts Statistics (database)
* While not directly related to general forecasting parameters there are narrower fiscal risks that arise from specific sources. For example, the possible need to provide fiscal support to state-owned enterprises.
Public Employment
Identification, measure and disclosure of sources of fiscal risks (2019)
Public sector employmentas % of total employment (2018)
Source: International Labour Organization ILOSTAT database
22.8%North Macedonia
10% 15% 20% 25% 30% 35%
21.1%27.2%WesternBalkans OECD OECD-EU 23.7%
Strategic public procurement by objective(2019)
Source: IMF Government Finance Statistics database. * See Notes
NoYes, and
it is availableonline
50% 33%
18% 7%
26% 11%
Yes, but it isnot available
online
17%
75%
63%OECD-EU
OECD
Western Balkans
Yes,but it is not available online
North Macedonia
Politicalappointee
Civilservant
67% 33%
52% 48%
52% 48%
Political appointee
OECD-EU
OECD
Western Balkans
North Macedonia
Status of the head of Centre of Government(2019)
Source: OECD (2019) Questionnaire for the Western Balkans on Organisation and Functions of the Centre of Government
Public Procurement
Human Resources Management
0.64 0.56 0.64 0.64
NorthMacedonia
0.0
0.2
0.4
0.6
0.8
1.0
0.0
0.2
0.4
0.6
0.8
1.0
OECDWesternBalkans OECD-EU
Institutions Digital Government
Source: OECD Survey on Strategic Human Resources Management in Central/Federal Governments
Existence of a list with fully digital servicesprovided in the public sector (2019)
Source: OECD Survey on Public Procurement
Support togreen publicprocurement
Policy / strategy at the central level
Policy/strategy at the level of some speci�c procuring entities
Support to SMEs
Support toinnovative goods and
services
No policy / strategy
WesternBalkans
OECD
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Policy/strategy both at the central level and at the level of some speci�c procuring entities
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NorthMacedonia
Composite index from 0 (lowest) to 1 (highest)
Functionalities provided by thee-procurement system (2019)
Source: OECD Survey on Public Procurement
Tenderannouncement
Provided on central e-procurement system
Only on that of speci�c procuring entity(ies)
E-submissionof bids
Noti�cationof award
No
E-invoicing
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OECD
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NorthMacedonia
Separation between regular HRM practices and those for Senior Civil Servants (2019)
Composite index from 0 (lowest) to 1 (highest)
Source: OECD Survey on Strategic Human Resources Management in Central/Federal Governments
Level of delegation of HRM in line ministriesat the central government level (2019)
Source: OECD (2019) Survey for the Western Balkans on Digital Government
0.05 0.36 0.55 0.53
NorthMacedonia
0.0
0.2
0.4
0.6
0.8
1.0
0.0
0.2
0.4
0.6
0.8
1.0
OECDWesternBalkans OECD-EU
Ease of doing business (2020)
Source: World Bank (2019) Doing Business database
Composite indicator from 0 (worst) to 100 (best)
Notes
Share of top and bottom performers in mathematics in the Programme for International Student Assessment [PISA] (2018)
For more information on the data (including full methodology and figure notes) and to consult all other Country Fact Sheets:http://www.oecd.org/gov/government-at-a-glance-western-balkans-a8c72f1b-en.htm
The public finance and economics data for Western Balkans countries, which are based on the IMF’s World Economic Outlook and the IMF’s Government Financial Statistics databases – harmonised with the System of National Accounts (SNA), were extracted on 19 February, 2020. For the OECD and the EU28 averages – also based on the SNA – data were extracted from the OECD Government at a Glance online database from the last available update: 4 January, 2020 (financial government accounts: 21 January, 2020). The SNA government debt definition differs from the definition of debt applied under the Maastricht Treaty and for this reason the EU average is not presented here. Western Balkans, OECD and EU28 averages for public finance and economics are weighted.
1% 2% 11% 11%North Macedonia
OECDWesternBalkans OECD-EU
100%
100%100%
100%
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61% 54% 24% 21%
0% 0%
Bottom performers are stu-dents who reached a score be-low 2 in the assessment, while top performers are those who reached a score of 5 and 6.
81 73 78 77
NorthMacedonia
0
20
40
60
80
100
0
20
40
60
80
100
OECDWesternBalkans OECD-EU
Source: OECD, PISA 2018 Database
Outcomes
52%Judicial system
Education system
46%Health care
57%54%
33%22%
National government34%27%
North Macedonia Average
Range
Average
20
40
60
80
100
WesternBalkans
OECD
Source: Gallup World Poll
Satisfaction and confidence across public services (2019)
Government at a Glance: Western Balkans presents information on public governance in the Western Balkan region – covering Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, and Serbia, and compares it to OECD and OECD-EU countries. This first regional edition features 40 indicators on public finance, public employment, centre of government, budgeting practices and procedures, human resources management, public procurement, digital government, core government results and serving citizens. Governance indicators provide important benchmarks on public administration systems, practices and performance. Indicators are presented in a user-friendly format using charts, with brief descriptive analyses of the major findings, and a methodological section on the definition of the indicator and any limitations in data comparability.
* This designation is without prejudice to positions on status, and is in line with United Nations Security Council Resolution 1244/99 and the Advisory Opinion of the International Court of Justice on Kosovo’s declaration of independence.
Government at a Glance: Western Balkans 2020
The Excel spreadsheets used to create the tables and figures in Government at a Glance: Western Balkans 2020 are available via the StatLinks provided throughout the publication:https://doi.org/10.1787/a8c72f1b-en
