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PM Marković, IMF Delegation: First steps of fiscal consolidation welcomed

PM Marković, IMF Delegation: First steps of fiscal consolidation welcomed
Published date 28.02.2017 16:39 | Author PR Service

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Photos: PM Marković, IMF Delegation

Podgorica, Montenegro (28 February 2017) -- Fiscal consolidation measures, stipulated by the Budget for 2017 and the Rehabilitation Plan, are a good steps towards fiscal consolidation, but it is necessary to make additional efforts in this area. This was concluded at the meeting of the Prime Minister Duško Marković and the delegation of the International Monetary Fund (IMF), headed by the Head of IMF Mission for Montenegro Martin Petri.

Petri pointed to the high public debt, but also evaluated the current good pace of economic growth and commended the fiscal consolidation measures. In this context, he said that savings on the expenditure side need to be increased. He also pointed to a large public administration, extraordinary charges produced by benefits for mothers with three or more children, and the necessity of redefining social policy and going into early retirement.

IMF delegation, which currently makes an analysis of the economic situation in Montenegro, will propose measures on the revenue side. The IMF encouraged Montenegro to persist in efforts to stabilise its public finances, strengthen the economy and create better living conditions for citizens.

Prime Minister Marković thanked the IMF for their help and support, and expressed a firm commitment of the Government to work on reducing the public debt and deficit, but preserving economic growth and development. As the Prime Minister explained, only this way Montenegro can generate conditions for creating new jobs and a better life for citizens.

Noting that some savings in current spending were already realised in January, the Prime Minister said that he will continue to strongly advocate for a more careful attitude of the administration towards the state money and resources. He announced the adoption of Fiscal strategy with medium-term measures of consolidation, whereby the Government will consider the recommendations of the IMF, with due regard to strengthen fiscal stability, maintain economic growth and ensure fair distribution of social funds.