Q:
A:
Public debt to drop as of next year
Belgrade,
2 December 2016
Minister of Finance Dusan Vujovic stated today that the public debt of Serbia will stop at 73.5% of GDP at the end of the year, after which the debt will start dropping.
Vujovic said at a press conference held on the occasion of adoption of the Budget bill for 2017 that the public debt will be reduced, although the state assumed old debts of the Petrohemija petrochemicals company and of other public companies where there was a social interest that the state takes them.
At the end of the next year we will have a debt of 72.8% of GDP, which will be 0.7% less in comparison to 31 December 2016, he said and added that the growth of GDP will be bigger, as well as the effects of borrowing.
The Minister underlined that Serbia will have a permanent and stable drop of public debt and added that the government wants to actively control foreign currency risks.
He said that on 5 December the Serbian parliament will examine the Budget bill for 2017, which will be followed by a discussion on amendments and by-laws.
Vujovic presented the fact that total capital investments in the Budget bill for 2017 stand at RSD 147 billion, while capital expenditures for project loans will be RSD 94 billion.
Project loans make up for 2.1% of GDP, and if projects in local governments and construction of road infrastructure are added to that, capital investments reach approximately RSD 147 billion, i.e. 3.3% of GDP, he specified.
If a part of subsidies with capital character is added to this amount, and these are interest rates and subsidies for investments, then we are close to the level of 4% of GDP.
The Minister expressed the expectation that this plan will be realised in 2017 already, while stabilisation at the desired level will follow in coming years, owing to partnership between the public and private sectors.
At the end of the next year we will have a debt of 72.8% of GDP, which will be 0.7% less in comparison to 31 December 2016, he said and added that the growth of GDP will be bigger, as well as the effects of borrowing.
The Minister underlined that Serbia will have a permanent and stable drop of public debt and added that the government wants to actively control foreign currency risks.
He said that on 5 December the Serbian parliament will examine the Budget bill for 2017, which will be followed by a discussion on amendments and by-laws.
Vujovic presented the fact that total capital investments in the Budget bill for 2017 stand at RSD 147 billion, while capital expenditures for project loans will be RSD 94 billion.
Project loans make up for 2.1% of GDP, and if projects in local governments and construction of road infrastructure are added to that, capital investments reach approximately RSD 147 billion, i.e. 3.3% of GDP, he specified.
If a part of subsidies with capital character is added to this amount, and these are interest rates and subsidies for investments, then we are close to the level of 4% of GDP.
The Minister expressed the expectation that this plan will be realised in 2017 already, while stabilisation at the desired level will follow in coming years, owing to partnership between the public and private sectors.
-
Belgrade, 30 June 2025IMF confirms Serbia successfully implementing all agreed reforms
-
Belgrade, 27 June 2025Double Taxation Avoidance Agreement with Germany signed
-
Kostolac, 25 June 2025Construction of Kostolac wind farm nearing completion
-
Belgrade, 24 June 2025Government supports request for new postponement of sanctions against NIS
-
Belgrade, 23 June 2025Procedures to facilitate sale of Serbian products to China to be accelerated
-
Belgrade, 21 June 2025Serbia receives first funds under Growth Plan for the Western Balkans
-
Belgrade/Cairo, 20 June 2025New phase in relations with Egypt in field of agriculture
-
Belgrade/Athens, 18 June 2025Serbia’s leadership position in power sector
-
Obrenovac, 10 June 2025Trans-Balkan Corridor most important project for electricity transmission in region
