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PM Marković, World Bank's Muller: Fiscal sustainability important for boosting economic growth and development

Published on: May 18, 2017 8:30 PM Author: PR Service
Podgorica, Montenegro (18 May 2017) – Government of Montenegro's measures aimed at improving the fiscal sustainability have yielded encouraging results, thus creating an opportunity for faster economic growth and development, the meeting between Prime Minister Duško Marković and World Bank's Vice President for Europe and Central Asia Cyril Muller emphasised.

Speaking about the fiscal sustainability in Montenegro, PM Marković said that the first measures introduced in December 2016 yielded encouraging results, particularly when it comes to increasing revenues and decreasing spending. The revenues increased compared to the same period last year, PM Marković underlined, adding that the expenditures are below expected forecast for this year. Nevertheless, new fiscal sustainability measures are necessary in order to deal with deficit and high public debt, PM Marković pointed out.

He explained that loan arrangements  will no longer not be used for spending, but only for development, adding that the Government will prepare a mid – term fiscal strategy by the end of May. The new strategy will be aimed at improving sustainability of public finances, as an important precondition for macroeconomic stability and long – term economic development, PM Marković underlined.

World Bank's Vice President Muller noted that he is extremely impressed by the Government’s willingness to address the fiscal sustainability issue. The Government should be more determined in implementing fiscal sustainability measures in order to boost the economic growth and development, Mr Muller outlined.

Annual economic growth is estimated at 3% in the period 2017 – 2019, Mr Muller said, adding that careful macroeconomic management and development of private sector will have an impact on the expected outcome. Economic growth in Montenegro can be above the expected 3% if the country is willing to pursue the current economic programme, World Banks’s Vice President Muller pointed out.

The World Bank’s willingness to provide budgetary support to the Government will create space for Montenegro’s presence at foreign markets, thus allowing it to improve its credit rating, Mr Muller highlighted.

PM Marković thanked Mr Muller for the World Bank’s overall support, stressing that it has invested more than 453 million EUR through loans and grants in wide-range of areas such as health care, environmental protection, energy efficiency, education and agriculture.

For Mr Muller's full statement please click the video link above.
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