Dragan Kojadinovic, left, and Mladjan Dinkic
After the meeting with union representatives, Kojadinovic announced that individual collective agreements will be signed in institutions of culture and added that nearly €50 million will be invested from the Serbian budget for reconstruction and purchase of equipment in these institutions starting from October 1.
Serbian Minister of Finance Mladjan Dinkic said that a protocol on salaries in culture was proposed and explained that after the rationalisation of the number of culture workers last year, legal conditions were made for a salary increase by between 16.3% and 32.5%.
Coefficients for all culture workers with university degrees will increase by between 20% and 32.5% starting from June, Dinkic said.
Dinkic pointed out that the announced salary increase in health, education and culture sectors, as well as the planned investment of €1billion, is not a threat to the envisaged inflation rate for 2006.
Dinkic warned that the only potential cause for the 2006 inflation rate to exceed the projected 9.3% could be a significant hike in the price of oil in the international market. He added that the price of oil has already gone beyond $70, whereas the light oil of the Ural brand has reached over $65 per barrel in only one week.
Dinkic stressed that the announced investment of around €1 billion from privatisation revenues will be planned so as not to encourage inflation. The funds will not all be spent in 2006, but next year as well, he added.
The largest portion of the funds is not intended for public spending and will not bring about an increase in market demand, explained Dinkic and recalled that the Serbian government's measures for restraining inflation include activities to reduce public spending and the control of public sector salaries.
He added that thanks to the government's efforts, retail prices in the first quarter rose by only 2.2% and are within the projected parameters.