Tivat, 26 May 2023 (MIA) - Only stable public finances can ensure long-term growth and development, aimed at improving citizens' living standard. Hence, we are gradually reducing the budget deficit, in order to reduce the need for new borrowings, while being careful to not jeopardize the development component, because slowing down growth equally produces negative effect on fiscal sustainability, Finance Minister Fatmir Besimi emphasized at a panel discussion held at the International Monetary Fund (IMF) and World Bank Constituency meeting in Tivat on Friday.

At the panel discussion, governors of the central banks of Moldova, Armenia, and Romania debated, while Klaas Knot, president of the Netherlands Central Bank, and Alfred Kammer, director of the European Department at IMF gave keynote speeches.

Besimi pointed out that amid the overlap of a few global economic crisis, good coordination between fiscal and monetary policies is needed. He added that the Government has adopted the Strategy for Fiscal Sustainability, and is implementing measures that gradually reduce the gap between the revenue and expenditure side of the budget, which can be seen by the narrowing of the budget deficit each year, the Ministry of Finance said in a press release.

The Minister emphasized that fiscal authorities should pay attention to the vulnerable groups, as well as the small and medium-sized enterprises, which need support. According to Besimi, fiscal policies should play their role in protecting these entities and the economy. Policymakers should prioritize reforms and public investments that encourage growth, influence fiscal sustainability, and accelerate green transition.

At the meeting sidelines, Minister Besimi met with World Bank Regional Vice President Antonella Bassani, Vice President of the International Finance Corporation (IFC) Alfonso Garcia Mora, and director of the European Department at IMF, Alfred Kammer. ssh/ik/

Photo: Ministry of Finance