FISCAL COUNCIL: Deficit cut by half but objective not met yet

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President of the Fiscal Council Pavle Petrovic has said today that the government achieved huge success in 2015 and cut deficit from 6,6 to 3,7% GDP but at the same time he warned that it is still high fiscal deficit which does not provide healthy public finance.

- Out of total three-year annual plan in 2015, semi progress was made. The biggest and most important success was made in budget deficit decrease from 6,6 to still large percentage of 3,7%in GDP – Petrovic said, adding that it is not enough to halt increase in public debt and change of its direction i.e. it is not sufficient that public debt starts decrease.

President of the Fiscal Council states that in Fiscal strategy, planned decrease of deficit to 1,8 % in 2018 which, he outlined, is a good objective but on the other hand, there is a potential danger that deficit of only 0,5% is generated and that it remains at app. 3,5% GDP.