- The parliamentary Finances and Budget Committee is set to debate the draft-Budget review on Wednesday.

The review includes cuts between 4.5-5 percent, with reduction of total budget expenditures amounting to Denar 7,6 billion (EUR 125 million), whereas revenues are cut by Denar 7,39 billion (EUR 121 million).

The cuts come as a result of the recession in a number of EU countries, which has caused consequences on Macedonia's economy, with the review aiming to improve its liquidity.

The budget deficit remains at 2.5 percent, inflation at 2.8 percent, reflecting price hikes in recent months under the influence of oil prices at global markets.

The Government's GDP growth projection stands at 2.5 percent, taking into account the negative results of industrial output in the first quarter of 2012.

The Government has decided to take a Deutsche Bank loan of EUR 250 million for financing of the 2012 Budget.