26th May 2023, Tivat – “Government of the Republic of North Macedonia is committed to providing long-term fiscal sustainability. Long-term growth and development can be ensured only by having sound public finances in place, thus providing for higher living standard of the citizens. Hence, budget deficit is gradually decreased, all to the end of reducing the need for new borrowings, while also sustaining the development component since the growth slowdown equally produces negative impact on the fiscal sustainability”, Minister of Finance pointed out within the panel discussion held within the IMF and WB Constituency Meeting, taking place in Tivat, Montenegro.
Minister Besimi took part in the panel-discussion, covering the topic “Striving For Economic Stability/Fiscal Consolidation and Monetary Policy Tightening – What Is The Optimal Policy Mix?”, wherein, the having addresses thereat.
Besimi pointed out that sound coordination among the fiscal and monetary policy is required amidst few overlapping global economic crises. Thus, he underlined that the COVID-19 crisis imposed the need for an expansionary fiscal policy underpinned by a loose monetary policy aimed at boosting the economic activity, in times of inflationary pressures, the fiscal policy should underpin the monetary policy, in terms of putting efforts aimed at curbing demand and influencing the price pressures through fiscal consolidation, in particular via attentive expenditure management. To that end, our Government adopted Fiscal Sustainability and Economic Growth Support Plan, while also implementing a series of measures, which provide for gradual reduction of the gap between the Budget revenues and expenditures, as reflected by the deficit, being narrowed from year to year.
However, as Besimi pointed out, fiscal authorities should take care of the vulnerable categories, as well as the small- and medium-sized enterprises, which need support. Hence, the fiscal policy should play part in protecting both these entities and the economy as a whole. Thereby, the policy makers should give priority to the reforms and the public investments booting growth, contributing to fiscal sustainability and speeding up green transition.
At the Margins of the Constituency Meeting in Tivat, Minister Besimi had bilateral meetings with the WB Vice President Antonella Bassani, the IFC’s Vice President for Europe, Latin America and the Caribbean, Alfonso Garcia Mora and the European Department at the IMF, Alfred Kammer.