20/10/2003 08:30
The latest report of the Economist Intelligence Unit released on Friday has described the government’s forecasts on fiscal deficit for the next two years as “overoptimistic”. On the first report after the publication of the Pre-Accession Economic Program, the Economist analysts have expressed their mistrust on the government’s estimates, stressing that the forecasts for a drop in fiscal deficit to 3.7% in 2004 and 2.8% in 2005 are exceptionally optimistic.
“The government’s anticipation that the improvement in the tax collection will increase the state revenues is not feasible”, EIU analysts Jan Friedrich and Robert O’ Daly said. “More than that, the PEP anticipates a cutback in the government’s consumption, but this might not be enough to control the increase in expenditure”. According to these estimates, EIU expects that the fiscal deficit for 2004 will reach 4.4% and not 3.7% (PEP).
The EIU analysts have also criticized government on its stance to liberalizations: “Government is not enthusiastic as regards to liberalizations, if we take into account the strong impacts of the left-wing parties participating in it”.
On Friday, CB Governor, Christodoulos Christodoulou said that the estimates of this PEP are “more realistic” than the previous one, but will be unfeasible without serious effort and exemplary consistency.
“The government’s anticipation that the improvement in the tax collection will increase the state revenues is not feasible”, EIU analysts Jan Friedrich and Robert O’ Daly said. “More than that, the PEP anticipates a cutback in the government’s consumption, but this might not be enough to control the increase in expenditure”. According to these estimates, EIU expects that the fiscal deficit for 2004 will reach 4.4% and not 3.7% (PEP).
The EIU analysts have also criticized government on its stance to liberalizations: “Government is not enthusiastic as regards to liberalizations, if we take into account the strong impacts of the left-wing parties participating in it”.
On Friday, CB Governor, Christodoulos Christodoulou said that the estimates of this PEP are “more realistic” than the previous one, but will be unfeasible without serious effort and exemplary consistency.
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