International Monetary Fund has demanded from the government in FYROM to take urgent measures in order to cut expenses. IMF recommends the start of a fiscal consolidation and suggests that public debt should be below 50% of GDP.
This financial institution says that if public debt is over 50% of GDP, then this is dangerous. “There must be savings by rationalizing agricultural subsidies and by rationalizing funds allocated for local government. There must also be reforms and better management for the pension fund”, IMF says.
Other recommendations relate to the increase of retirement age and the level of contributions that companies pay for their employees. According to IMF predictions, this year will mark a 2,2% economic growth. Public debt this year will be 47,9%, while in five years, it will go up to 54,7% of GDP. /balkaneu.com/