World Bank2013-08-282013-08-282002-04-02https://hdl.handle.net/10986/15427The review was undertaken, and completed against a background of substantial political economic disruption: the Kosovo crisis of 1999 threatened to undermine the country's accomplishments in building macroeconomic, and fiscal stability; and, the security crisis of 2001, tested once again Macedonia's political, and economic integrity. Both instances were successfully surpassed, showing significant steps towards becoming a market oriented state within the European context, and, in its willingness to accept, and ratify the Peace Agreement of November 2001. But, expenditure pressures rose, leading to additional spending, while revenues declined owing to economic weakness, and decreased tax enforcement; clearly, fiscal stability stands on the balance. Not surprising, the quality of expenditures became an important issue, for although acceptable aggregate targets were being achieved, the budget's economic composition was not suited for promoting economic growth. Institutional aspects show that budget preparation, and processes provide no link between policy commitments, and available resources, aggravated by unfounded credibility on the budget, as an instrument for policy formation. Recommendations call for improved resource allocation within fiscal constraints, i.e., reducing public resources, and, laying the foundation for a budget process legal framework. In addition, reforms should be institutionalized through accountability, and capacity building.en-USCC BY 3.0 IGOPUBLIC EXPENDITURESINSTITUTIONAL CHANGEPOLITICAL FACTORSMACROECONOMIC STABILIZATIONFISCAL PRESSURESSECURITY MEASURESCONFLICT RESOLUTION SKILLSFISCAL POLICYECONOMIC GROWTHEXPENDITURE ANALYSISPUBLIC SPENDINGTAX ENFORCEMENTREVENUE MEASURESBUDGET PROCESSINSTITUTIONAL FRAMEWORKPOLICY COORDINATIONINFORMATION REQUIREMENTSPOLICY IMPLEMENTATIONFISCAL SUSTAINABILITYCAPACITY BUILDINGLEGAL FRAMEWORKPOLICY REFORMSOCIAL PROTECTION SYSTEMS ACCESS TO INFORMATIONACCOUNTABILITYACCOUNTABILITY MECHANISMSACCOUNTINGALLOCATION OF RESOURCESANTI-POVERTY STRATEGIESBUDGET EXECUTIONBUDGET FORMULATIONBUDGET MANAGEMENTBUDGET PROCESSBUDGET REFORMBUDGET REFORMSBUDGETARY FUNDSCAPACITY BUILDINGCAPITAL EXPENDITURESCAPITALIZATIONCENTRAL AGENCIESCENTRAL GOVERNMENTCITIZENSCIVIL SERVICECIVIL SOCIETYCOMMUNITY PARTICIPATIONCOUNTRY'S COMPETITIVENESSCPICURRENCY UNITDECENTRALIZATIONDECISION MAKERSDECISION-MAKINGDEFICITSDEPOSIT INSURANCEDEVELOPMENT GOALSDONOR COMMUNITYECONOMIC GROWTHECONOMIC MANAGEMENTEMPLOYMENTEXCHANGE RATEEXECUTIONEXTERNAL DEBTFINANCIAL CONTROLFINANCIAL INFORMATIONFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL SECTORFINANCING SOURCESFISCALFISCAL COSTSFISCAL DEFICITFISCAL DISCIPLINEFISCAL POLICYFISCAL PRESSURESFISCAL PROBLEMSFISCAL REFORMFISCAL REFORMSFISCAL YEARFOREIGN CURRENCY DEPOSITSFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTGOVERNMENT EXPENDITURESGOVERNMENT OFFICIALSGOVERNMENT PERFORMANCEGOVERNMENT POLICYGOVERNMENT REVENUESHEALTH INSURANCEHIGH UNEMPLOYMENTHUMAN RESOURCEHUMAN RESOURCE MANAGEMENTHUMAN RESOURCESIMPLEMENTATION PLANIMPROVED ACCESSINFLATIONINFORMAL ECONOMYINSTITUTIONAL ARRANGEMENTSINSTITUTIONAL BARRIERSINSTITUTIONAL CAPACITYINSTITUTIONAL CONSTRAINTSINSTITUTIONAL FRAMEWORKINSTITUTIONAL REFORMINSTITUTIONAL REFORMSINSURANCEINTERNAL AUDITINTERNATIONAL ACCOUNTING STANDARDSINVESTMENT SPENDINGLABOR MARKETLABOR MARKETSLAWSLEGAL FRAMEWORKLEGISLATIONLEGISLATIVE FRAMEWORKLEGISLATIVE PROPOSALSLEVELS OF GOVERNMENTLOCAL LEVELMACROECONOMIC FRAMEWORKMACROECONOMIC STABILITYMINISTRY OF FINANCEPENSION SYSTEMPENSIONSPERFORMANCE APPRAISALPOLICY ANALYSISPOLICY CHOICESPOLICY DECISIONSPOLICY FRAMEWORKPOLICY MAKINGPOLICY OPTIONSPOLICY PROCESSPOLICY REVIEWPOLITICAL INSTABILITYPOLITICAL INSTITUTIONSPOVERTY LEVELSPOVERTY REDUCTIONPOVERTY TARGETINGPRIMARY HEALTH CAREPRIORITY AREASPRIVATE SECTORPRIVATIZATIONPRIVATIZATION AGENCYPRODUCTIVITYPUBLIC ACCOUNTABILITYPUBLIC ADMINISTRATIONPUBLIC AGENCIESPUBLIC BUDGETPUBLIC DEBTPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC INSTITUTIONSPUBLIC OFFICIALSPUBLIC PARTICIPATIONPUBLIC POLICYPUBLIC RESOURCESPUBLIC REVENUESPUBLIC SECTORPUBLIC SECTOR EMPLOYMENTPUBLIC SERVICEPUBLIC SERVICESRATIONALIZATIONREGULATORY REGIMEREHABILITATIONRESOURCE ALLOCATIONRESOURCE ALLOCATIONSRESOURCE CONSTRAINTSRESOURCES MANAGEMENTRETIREMENTREVENUE SOURCESSECTOR PROVIDERSSECURITIESSERVICE DELIVERYSERVICE QUALITYSOCIAL ASSISTANCESOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL PROTECTION PROGRAMSSOCIAL SERVICESSTRUCTURAL CHANGESTRUCTURAL REFORMSTAXTAX OBLIGATIONSTAX REVENUESTEAMTECHNICAL ASSISTANCETRADEOFFSTRANSPARENCYTREASURYUNEMPLOYMENTUNEMPLOYMENT BENEFITSURBAN PLANNINGWAGESWORKINGWorld Bank10.1596/15427