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Restrictive budget for 2009 means lower inflation
Belgrade,
10 December 2008
Minister of Finance Diana Dragutinovic today stated that the government has adopted a restrictive budget for next year, which together with an adequate monetary policy will lead to lower inflation.
Dragutinovic told television station B92 that the government is oriented towards maintaining social harmony, given that the largest portion of budget funds is intended for salaries and pensions.
There are 260,000 unemployed in Serbia financed from the budget and we also have pension subsidies from the state budget, said Dragutinovic, announcing that employees in Kosovo-Metohija will no longer be receiving double salaries, which has often been the case in the past.
On average citizens will live better next year because of the restrictive budget which, along with the monetary policy, will definitely mean a lower inflation rate, which will, according to the latest estimates, amount to around 9% by the year’s end, the Minister said.
The budget presupposes considerably lower customs duties for a number of industrial and agricultural products, which will cause a drop in prices, explained the Minister, adding that a lower tax burden means the economy in 2009 will be better off than this year.
She also announced that salaries in the public sector will be reviewed, adding that control must be improved, not only of public companies, but also in all independent institutions owned by the state.
Except for Zeleznice Srbije and Resavica, public companies are not subsidised from the budget, which allows them to establish their own salaries to a certain degree, she said.
Commenting on the trade union’s request to abide by the General Collective Agreement, Dragutinovic said that the 2009 budget does not envisage payment of raises in salaries from the extended collective agreement.
She also said that the employment level in public administration should remain at this year’s level.
There are 260,000 unemployed in Serbia financed from the budget and we also have pension subsidies from the state budget, said Dragutinovic, announcing that employees in Kosovo-Metohija will no longer be receiving double salaries, which has often been the case in the past.
On average citizens will live better next year because of the restrictive budget which, along with the monetary policy, will definitely mean a lower inflation rate, which will, according to the latest estimates, amount to around 9% by the year’s end, the Minister said.
The budget presupposes considerably lower customs duties for a number of industrial and agricultural products, which will cause a drop in prices, explained the Minister, adding that a lower tax burden means the economy in 2009 will be better off than this year.
She also announced that salaries in the public sector will be reviewed, adding that control must be improved, not only of public companies, but also in all independent institutions owned by the state.
Except for Zeleznice Srbije and Resavica, public companies are not subsidised from the budget, which allows them to establish their own salaries to a certain degree, she said.
Commenting on the trade union’s request to abide by the General Collective Agreement, Dragutinovic said that the 2009 budget does not envisage payment of raises in salaries from the extended collective agreement.
She also said that the employment level in public administration should remain at this year’s level.
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