Within the „Road to recovery“ program the round table on fiscal consolidation and stand by arrangement with MMF was held

Centre for Policy and Governance (CPU) on 14/03/2013 organized the round table „Road to recovery: Fiscal stability and structural reforms“. Focus of the discussion was fiscal policy in BiH and challenges in this area which are currently facing BiH. Particular emphasis was on arrangement with International Monetary Fund (IMF), which is needed for maintaining fiscal stability and increase of fiscal responsibility in BiH during budget planning.

Ruben Atoyan, Chief of IMF mission in BiH said that IMF is satisfied with the current fiscal consolidation, and expressed hope that the consolidation will continue in the future. He mentioned that larger economic growth in BiH cannot be expected due to crisis in Europe, governments alone cannot give stimulus and that possibilities for private sector to give economic incentives should be explored.

Presenters at the round table were Goran Miraščić board member of the CPU, who reflected on an increase of economic competitiveness through tax reforms, and on improvement of business environment for creation of new jobs.

Eugen Šušak, chief of advisory group of Fiscal Council in BiH spoke of mechanisms of fiscal planning in BiH and fiscal sustainability, and on ideas how to collect new income for budget and possible discharges in certain sectors, and the need to keep unified VAT rate.

Alija Aljović, Assistant Minister of Finance of FBiH reflected on fiscal consolidation of the budget in Federation of BiH, and on Government measures for maintaining fiscal stability and the increase of fiscal responsibility in this entity. He recalled on questions of collaboration with lower levels of governance during budget planning which are caused by complicated constitution structure and lack of jurisdiction of federal level for stronger engagement in budget planning of lower levels of governance. Tarik Šahović, representative of International Financial Corporation (IFC) spoke of current business environment in BiH, implemented reforms in previous period and recommendations to improve current business environment.