"Law on local authorities financing should be next"

"Law on local authorities financing should be next"

"What the government has done very well so far is the austerity policy and halving the budget deficit from over 6.5 pct to under 2.5 pct, which was our 2016 estimate. In that regard, much of the work is already done, and what remains is sector reforms, a reform of public enterprises, privatization, solving the issue of companies under restructuring and a new law on financing of local self-government authorities", he said.

The law, initially planned for adoption in 2015, must now be passed as soon as possible to allow local authorities to suitably plan their 2017 budgets, he said.

The problems emerged when the current law, which is counter-productive in many ways, was passed in 2011 despite opposition from the Fiscal Council, the IMF and most experts, Altiparmakov said.