Q:
A:
Harsh austerity measures in public sector
Belgrade/Becici,
14 June 2013
Minister of Finance and Economy Mladjan Dinkic announced today that the Serbian government will debate on a budget revision bill next week, after which it will be forwarded to the Serbian Parliament for adoption.
Author:
Tanjug
Speaking at the Summit of finance ministers and governors of the region, held in Becici in Montenegro, Dinkic recalled that in 2009 the Serbian government froze wages and pensions, but no structural reforms were made so this measure did not yield wanted results.
He announced harsh austerity measures in the public sector and limited spending and underlined that the Serbian government’s aim is not to have any companies in restructuring left within a year.
The Minister added that subsidies to poor-performing companies will be significantly reduced.
He explained that the decision was made that the state should remain the owner of the public company Electric Power Industry of Serbia, and that other companies will be sold through tenders or will be reformed in some other way, all with the goal not to give subsidies to poor-performing companies anymore and not to spend money on companies with no future.
The Minister specified that there are 175 companies in Serbia that record losses and cost the state €750 million excluding subsidies, since they do not pay electricity and some other costs.
Dinkic stated that in the first four months of the year Serbia recorded a growth in exports of 24% and of industrial production 5.3%, but it also had a greater VAT return to exporters and less budgetary revenues.
The Serbian government at the moment is not thinking to increase taxes, but how to make companies that are not registered to pay taxes, he underlined.
He announced harsh austerity measures in the public sector and limited spending and underlined that the Serbian government’s aim is not to have any companies in restructuring left within a year.
The Minister added that subsidies to poor-performing companies will be significantly reduced.
He explained that the decision was made that the state should remain the owner of the public company Electric Power Industry of Serbia, and that other companies will be sold through tenders or will be reformed in some other way, all with the goal not to give subsidies to poor-performing companies anymore and not to spend money on companies with no future.
The Minister specified that there are 175 companies in Serbia that record losses and cost the state €750 million excluding subsidies, since they do not pay electricity and some other costs.
Dinkic stated that in the first four months of the year Serbia recorded a growth in exports of 24% and of industrial production 5.3%, but it also had a greater VAT return to exporters and less budgetary revenues.
The Serbian government at the moment is not thinking to increase taxes, but how to make companies that are not registered to pay taxes, he underlined.
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