- Tuesday, January 16, 2018 5:11 PM
Skopje, 16 January 2018 (MIA) - As of 2019 Macedonia wishes to launch a mid-term budgeting and instead of planning only the current to do so for the next three of four fiscal years, Finance Minister Dragan Tevdovski said Tuesday at the Euromoney Central and Eastern European Forum in Vienna.
'Joining forces with the IMF, we will work on implementing fiscal rules, mechanisms that will effectively control the level of public debt. One of the key benefits is that we will alter the way of planning and improve targeting, especially with social benefits and agricultural subsidies, which will improve their effectiveness,' stressed Tevdovski.
Tevdovski received praise from other panelists over the launch of the Macedonian Eurobond last week on the international capital market at an extremely low interest rate.
'The investors' demand reached EUR 3,5 billion, namely over 7 times higher than the offer, which is a strong indicator of investors' confidence in the country's stability and rather positive perspectives of its economy. We have reached the historically lowest interest rate. This is a clear signal that in the past economic policies were not the most successful and hence we might have paid a higher price for Eurobonds. I would also like to point out that Macedonia for the first time has entered into a proactive public debt management, refinancing already the Eurobond which is due in 2020, prematurely paying off the third of it at 50 percent lower interest rate,' Tevdovski said.
Steps have already been taken for gradual fiscal consolidation, he added, pointing out that this year's budget deficit has been reduced from 2.9% to 2.7%. The intention is for the budget deficit to be come down to 2% by 2020, he added.
The fiscal transparency has also been significantly improved - non-productive costs have been cut, while the tax reforms planned for the next year will improve the revenue side of the budget and also affect the reduction of the budget deficit, Tevdovski said.
The public spending, he went further, is intended for infrastructure, capital projects.
'As the political crisis is behind us, the expectations are that Macedonia will make a step forward to NATO membership and commence the EU accession talks, which will contribute to more intensive and sustainable economic growth,' Tevdovski said.
The 23rd forum in Vienna brought together over 1,100 participants, including finance ministers, central bank governors, financial institutions and investors. Minister Tevdovski was one of the keynote speakers, along with Austrian Central Bank Governor Ewald Nowotny, Armenian Finance Minister Vardan Aramyan, Georgian Finance Minister Mamuka Bakhtadze, Croatian Finance Minister Zdravko Maric, Lithuanian Finance Minister Vilius Sapoka and Serbian Finance Minister Dusan Vujovic. lk/17:10
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