Specificities of the Fiscal System in R. Macedonia

Abstract

This paper analyzes the basic principles and characteristics, as well as the functioning of the fiscal system in
the Republic of Macedonia the application of the historical approach, from the time of its introduction and all the
changes that have been made to the present time. An overview of the principles underlying fiscal policy is being made
in order to determine its positive impact on economic development in the country. The new principle embedded in the
current fiscal system of the Republic of Macedonia is the principle of tax neutrality and budget allocation. Budget
planning is one of the most important government activities and is a reflection of one of the most important steps of
the budget process. It depends on many factors and depends on the intensity of their impact on budget revenues and
expenditures.
The greater the responsibility for revenue planning, the more likely it is to predict and cover the expenditures. The
paper analyzes the budget revenues and expenditures as well as the tax system in order to determine the direction of
the fiscal policy and to give appropriate recommendations for a positive influence of the fiscal policy on the economic
development in the country.