Tiraspol, December, 6. /Novosti Pridnestrovya/. The government continues to cooperate with German consulting company "Berlin Economics". Cooperation with experts began in early 2017 and has been going on for about two years now. Within this framework, such areas of fiscal and tax policy were worked out.
As the press service of the PMR Government reports, at present, work with experts is proceeding in two directions - an assessment of the investment climate and a regular review of macroeconomic indicators in the republic. Prime Minister noted when opening the meeting, that Pridnestrovie is interested in close contact.
“Taking into account your recommendations, the government continues a consistent policy on the implementation of the so-called “budget maneuver”, the essence of which is to restructure budget expenditures. Here, the focus is on increasing the share of capital expenditures, investments in the infrastructure of housing and public utilities. And, of course, we are trying to stick to a relatively tight budget policy, being aware that the share of budget expenditures of 43-44 per cent of GDP is a lot” - Alexander Martynov said.
Also, the Head of Government recalled that last year the tax burden was stabilized at 28%. As a result, payments to the budget increased. The prime minister also thanked the experts for participating in PIEF-2018, which took place in October:
“Your participation provided certain, if not guarantees, then positive impressions about Pridnestrovie. In particular, European investors welcome the work of the Government and the Central Bank with respected consulting structures in conducting the analysis”.
In his turn, the managing director of Berlin Economics, Ricardo Jucci, thanked for the work and called the interaction productive: “I think this is a very productive collaboration. It is also important for us that our recommendations are partially implemented, and it is important that our work has an impact in Pridnestrovie”.
During the meeting, German experts presented the monitoring of economic situation. They rated it as “good enough”. So, according to experts, in the first half of 2018, GDP grew by 19 per cent, a revival of industrial production and energy was recorded. Investments increased significantly - by 46 per cent.
“It should be noted the stabilization of the fiscal situation. According to our estimated assumptions, the deficit was reduced to the level of 16 per cent of GDP for 6 months of 2018. But if you look at the deficit figures in 2017, the deficit for that period was 24 per cent of GDP. That is, reducing the deficit and risks in this regard, plus a sound monetary policy are the main reasons for economic growth in the first half of 2018” - Jörde Radeke noted.
As a positive trend, which has been going on since the end of 2017, the project manager pointed out a decrease in government spending.
At the end of the meeting, the Head of Government thanked for the calculations and high appreciation of Government work and once again emphasized the importance of recommendations and teamwork.
