Program for reducing debt with 4.6% by 2017
04/02/2016 15:25
PM Rama visits Theth for the innovations in the mountain tourist resorts, accompanied by ministers 30/04 15:48
The government presented a reform program for the next three years,
through which they want to reduce the public debt with 4.6% within 2017,
the final year of this government term.
The program plans to reduce the total debt from 72.5% to 67.9%.
The main instrument for realizing this, according to the government, is a strong reduction of public loans.
The tax deficit will be reduced from 4% of the GDP to 0.5% in 2018, going towards a balanced budget.
The government says there will be no more tax raise on individuals and businesses, and the entire debt reduction will come by the reduction of spending, which will increase with almost 2.5% of the GDP in the next four years.
The first spending they want to reduce are current ones, but investments will also be reduced, although with a lower pace.
The government says that the debt will also reduce thanks to the accelerated economci growth. Since the debt is calculated based on the GDP, a quicker growth of the economy will cause it to drop.
The document says that the economic growth with accelerate to 3.4%, from 2.6% that it was this year, and the trend will continue to grow until it reaches 4.2% in 2018.
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