Q:
A:
Budget deficit lower than planned
Belgrade,
28 July 2015
Minister of Finance Dusan Vujovic stated today that he expects that salaries and pensions will be increased by the end of the year, but not to the same amount they used to be.
Author:
Screenshot RTS
Vujovic told Radio-Television Serbia (RTS) that after six months of implementation of fiscal consolidation measures, the budget deficit is lower than what was planned and agreed with the International Monetary Fund (IMF).
The deficit is only 1% of GDP, making Serbia belong to the group of 5% of the most successful countries in Europe.
He recalled that at the beginning of the fiscal consolidation, pensions were reduced by 5.8 to 6% and wages by 10 %, which has brought significant savings.
Now we think that we need to offer citizens some sort of reward, said Vujovic and explained that by the end of the year, after the second revision of the arrangement with the IMF, which will be completed in September, it will be know precisely whether that is possible and to what extent.
He reiterated that the arrangement with the IMF was made in order to create a basis for a future increase in salaries and pensions, and not only to the level they used to be at, but even more, reminding that the IMF mission will be in Serbia from 20 August to 2 September.
The Minister pointed out that the adoption of a package of financial and economic laws that are currently under debate in the Serbian Parliament will be a good preparation for the upcoming second revision of arrangement with this international financial institution.
A large portion of what we need to do for the second revision is being prepared, and a significant part is being resolved through these laws, Vujovic concluded.
The deficit is only 1% of GDP, making Serbia belong to the group of 5% of the most successful countries in Europe.
He recalled that at the beginning of the fiscal consolidation, pensions were reduced by 5.8 to 6% and wages by 10 %, which has brought significant savings.
Now we think that we need to offer citizens some sort of reward, said Vujovic and explained that by the end of the year, after the second revision of the arrangement with the IMF, which will be completed in September, it will be know precisely whether that is possible and to what extent.
He reiterated that the arrangement with the IMF was made in order to create a basis for a future increase in salaries and pensions, and not only to the level they used to be at, but even more, reminding that the IMF mission will be in Serbia from 20 August to 2 September.
The Minister pointed out that the adoption of a package of financial and economic laws that are currently under debate in the Serbian Parliament will be a good preparation for the upcoming second revision of arrangement with this international financial institution.
A large portion of what we need to do for the second revision is being prepared, and a significant part is being resolved through these laws, Vujovic concluded.
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