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PM Marković: We reduce budget deficit, to continue this policy while investing in development

PM Marković: We reduce budget deficit, to continue this policy while investing in development
Published date: 17.07.2019 17:21 | Author: PR Service

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Podgorica, Montenegro (17 July 2019) -- Prime Minister Duško Marković said earlier today in the Parliament that the main goal of the Government's economic policy is to increase the quality of life of all citizens and that we are witnessing that progress has been made, but that we must continue implementing fiscal consolidation measures and make our finances long-term sustainable.

"We intend to continue with further reduction of the budget deficit and creation of conditions for the reduction of public debt in the medium term," said the Prime Minister.

The Prime Minister said that fiscal consolidation measures have yielded good results over the past two years, as evidenced by the fact that the original budget revenues have increased by about 260 million euros, which is a 17% increase.

"Furthermore, in the same period, we have spent more rationally, so we created conditions for increasing investments in infrastructure projects, which implementatio speeds up economic growth and directly affects the quality of life of each individual. The effects of the implemented fiscal adjustment measures made it possible for us to reduce the budget deficit from 5.8% of GDP in 2017 to projected 2.97% of GDP in 2019, and ensure that new borrowing is made exclusively for financing the Capital Budget and the early repayment of the existing debt. At the same time, the surplus of current budget spending was enabled, which indicates that the budget deficit was created exclusively due to the implementation of capital projects. Support of international financial institutions (IMF and the World Bank) testifies to the achieved results in the field of public finances. This contributed to improving the credit position of Montenegro, which provided more favourable conditions for obtaining funds in the international financial market, i.e., reprogramming of the existing loans with great savings, ",the Prime Minister concluded.

He added that the positive trends continue this year.

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