Finance: Public debt has been reduced, now below 55 percent of GDP

Ministry of Finance / Photo: MIA

Public debt decreased by 2,2 percentage points and as of the first quarter of 2022, according to data released today, amounted to 54,9 percent of GDP. At the same time, a decrease was registered in the government debt, which at the end of March amounted to 46,8 percent and was lower by 1,9 percentage points, said the Ministry of Finance (MF).

Therefore, they state that the additional reduction of public debt is a confirmation of the well-established fiscal policy and good management of public finances, especially since it is recorded in a period of crisis.

Fiscal policy remains committed to further consolidating and restructuring public expenditures by gradually reducing the budget deficit and public debt.

"Key elements of fiscal policy in the coming period are the redesign and improved structure of public finances, through increased share of capital expenditures, as well as phased fiscal consolidation. The budget deficit in 2020 was 8,2 percent of GDP, and in 2021 it is 5,4 percent of GDP. This year, that downward trend continues. "In the first four months, ie January-April 2022, there was a 44 percent lower deficit compared to that period last year," said Finance.

The ministry is projecting a deficit of 5,3 percent of GDP this year, 4,2 percent in 2023, 3,6 percent in 2024, 3,2 percent in 2025, 3 percent in 2026 and 2,8 percent in 2027. year.

At the same time, the Ministry of Finance emphasizes that they remain committed to further reducing the public debt and lowering it below the Maastricht criterion of 60 percent of GDP. According to the revised Public Debt Management Strategy, in the medium term, according to the ministry, by 2027, public debt will stabilize and decrease to 56,6 percent, while government debt will be reduced to 50,2 percent.

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