EFSD participates at CAREC economic and financial stability Cluster Forum

14.02.2023. EFSD Chief Economist Evgeny Vinokurov delivered a speech at the CAREC Economic and Financial Stability Cluster Forum. At the meeting, participants discussed the challenges and opportunities in mobilizing domestic revenues, designing efficient and equitable tax policies, and implementing carbon taxation, and shared countries’ experience and lessons learned.

The EFSD speaker drew attention to the challenges in the field of fiscal policy. He noted that Central Asia lagged behind other regions in collecting tax revenue. This may be due to several factors. One of them is macroeconomic policy aiming at high rates of economic growth, including heavy use of tax incentives. Also, some countries feature shortcomings in tax administration as well as a large informal sector in economies.

Against this background, the EFSD conducts detailed macroeconomic monitoring for its recipient countries and provides financial support aiming at improving conditions for sustainable, balanced and inclusive growth. Measures to ensure fiscal sustainability are reflected in the programs of budgetary support for the EFSD recipient states. In addition, as a new initiative approved by the Fund’s member states, it launches three technical assistance programs this year. They deal with public finance management issues, including tax administration, and contain capacity-building components for public employees.

Источник: