Funding for civil society organisations from the central budget remains cemented at only 4% of their total revenue

Revenues of civil society organisations from State Funding at the central level for 2023

In 2023, civil society organisations (CSOs) received 332,318,473 denars from the central budget. Of these funds, 253,120,468 denars were allocated through public calls, while 79,198,005 denars were awarded without such calls. As in previous years, only 4% of the total revenue of civil society organisations in 2023 came from the central state budget. Compared to the previous year, the share of central funding remains roughly the same, amounting to around 5.4 million euros.

Looking at specific budget users, there was a notable decrease in funds allocated by the Ministry of Health, which granted about 24 million denars in 2022, compared to approximately 17 million denars in 2023. In contrast, the Ministry of Labour and Social Policy increased its funding by around 57% compared to the previous year. Other ministries, such as the Ministry of Economy, Ministry of Local Self-Government, and the Agency for the Realisation of Community Rights, also saw an increase in funds allocated to CSOs in 2023. However, no significant changes were observed in the funding provided by other state administration bodies.

Although in 2023 a working group led by the Ministry of Justice met several times to discuss amendments to the Law on Associations and Foundations, the political will to pass the changes was lacking. This prevented improvements to the enabling environment for civil society development. Unfortunately, the most significant setback in implementing the Government’s Strategy for Cooperation with and Development of Civil Society 2022-2024 remains the reform of state funding for CSOs. This reform is expected to introduce greater transparency, accountability, and efficiency in the use of funds that support citizens’ rights at both local and national levels in Macedonia. The targets set in the Strategy, which aimed for 30% of CSO revenues to come from state funding, remain unrealised.

Highest and Lowest Grants Allocated from Central Government in 2023

In 2023, the smallest grant awarded to a civil society organisation from the central budget amounted to 18,475 denars, given by the Ministry of Culture to the Committee for Byzantine and Medieval Studies. In contrast, the largest grant of 11,165,000 denars was awarded by the Ministry of Labour and Social Policy to the National Union of the Blind.

Planned Funds for Civil Society Organisations in 2024

In the 2024 Budget of the Republic of North Macedonia, 820,427,000 denars (approximately 13 million euros) have been planned under budget line 463 – transfers to non-governmental organisations. This amount does not include funds allocated by the Ministry of Justice, as most funds under line 463 are directed to political parties, nor does it include the Ministry of Culture, which allocates CSO funds under budget line 464. It remains to be seen whether these funds will change with the upcoming budget revision announced by the new Prime Minister. With the announced budget revision, we expect no reduction in the already planned funds, which for 2024 are lower than those planned for the previous year. Moreover, we anticipate that the new government will focus on passing the proposed amendments to the Law on Associations and Foundations, which will be consulted with stakeholders and contribute to positive changes in the civil society sector.

We advocate for a reform in state funding for civil society organisations!