Budget sustainability during the next three years estimated by covering the current costs with incomes (except for grants) will improve and the budget surplus will rise from 0.8% in 2018 to 1.1% in 2021, IPN reports, with reference to the medium-term budgetary framework for 2019-2021 that was approved by the Cabinet earlier this week.

The document says the budgetary prospects in the given period will be insignificant, while the financing options limited. Starting with 2019, the foreign grants will decrease considerably in volume, mainly owing to the suspension of the EU budget support.

The situation will be partially offset by reducing recurrent costs. But the budgetary-fiscal system will be anyway affected, especially as regards the capital costs.

In 2017, the capital costs represented about 10% of the budget expenditure. According to the medium-term budgetary framework, a larger volume of public investments is needed in infrastructure and other important areas. In 2019-2021, the capital costs ae expected to increase to approximately 13.7% of the budget expenditure.