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A:
Serbia could save RSD 100 billion annually
Belgrade,
18 September 2009
State Secretary at the Serbian Ministry of Economy and Regional Development Vesna Arsic said today that by implementing the measures recommended by the World Bank for public sector reform Serbia could save RSD 100 billion annually.
Speaking at the presentation of a World Bank report on Serbia’s public sector, Arsic said that the report has come at the right moment, adding that the reforms should be carried out efficiently.
She said that every sector will make its own analysis but the report is a good basis for further steps.
She stressed that the World Bank made an analysis of the sectors with the highest levels of public spending and these include pensions, education, railways, roads and subsidies for agriculture and public companies.
William Dillinger, who drafted the report, stressed that pensions are the most expensive component of the budget, adding that nearly a third of the total expenditure goes to pensions.
He stressed that Serbia will benefit most from a pension system reform because it has a large elderly population, adding that on the other hand there is an inadequate number of people who work and contribute to the pension fund.
He said that there is also a considerable number of people who work outside the system and do not contribute to the pension fund.
Dillinger said that pensions are very high in comparison with salaries, 60% of the average salary.
Reducing expenses and increasing efficiency is necessary also in education, health and the subsidies system, said Dillinger, adding that in the road sector it will not be possible to make big savings. He remarked that it is desirable to increase social benefits for low income groups.
He said that it is necessary to increase funds for social projects, particularly during the crisis, when the number of people in need of help could increase.
The World Bank report, which was drafted in 2009, may be found at the website of the World Bank in Serbia.
She said that every sector will make its own analysis but the report is a good basis for further steps.
She stressed that the World Bank made an analysis of the sectors with the highest levels of public spending and these include pensions, education, railways, roads and subsidies for agriculture and public companies.
William Dillinger, who drafted the report, stressed that pensions are the most expensive component of the budget, adding that nearly a third of the total expenditure goes to pensions.
He stressed that Serbia will benefit most from a pension system reform because it has a large elderly population, adding that on the other hand there is an inadequate number of people who work and contribute to the pension fund.
He said that there is also a considerable number of people who work outside the system and do not contribute to the pension fund.
Dillinger said that pensions are very high in comparison with salaries, 60% of the average salary.
Reducing expenses and increasing efficiency is necessary also in education, health and the subsidies system, said Dillinger, adding that in the road sector it will not be possible to make big savings. He remarked that it is desirable to increase social benefits for low income groups.
He said that it is necessary to increase funds for social projects, particularly during the crisis, when the number of people in need of help could increase.
The World Bank report, which was drafted in 2009, may be found at the website of the World Bank in Serbia.
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