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Budget for 2014 first step toward consolidation of fiscal system
Belgrade,
27 November 2013
Minister of Finance Lazar Krstic stated today that the budget for 2014 has been made with responsibility and on realistic grounds, meaning that the state will not insist on greater cuts than the ones that are necessary at the moment.
Author:
Tanjug
Speaking at the 5th national budget forum held at Serbian parliament, Krstic underlined that the budget for 2014 is the first step towards the consolidation of Serbia’s fiscal system and bringing public finances into order.
Commenting on the assessment of the Serbian Fiscal Council that additional savings worth €300 million will be necessary for next year, the Minister underlined that the Council based this assessment on a supposition that the augmented collection of taxes, planned for 2014, will not work.
He announced that the restructuring of companies will be completed within next six to nine months, and that problems of big companies, such as Galenika and Zelezara Smederevo steelworks, will be resolved.
The government’s position is that this needs to be done in the given period because otherwise savings will not help and the budget will not be executed.
Krstic noted that the government is considering to limit the employment in the public administration and in other big systems, taking into account that the increase in the number of employees in the public sector is being recorded.
The Minister underlined that the Law on budgetary system, which will be discussed tomorrow at the Serbian government session, will define rules of employment of new people in the public administration, the Minister underlined.
According to him, at this moment no political consensus has been reached on applying more aggressive reforms of the pension system.
He added that a technical mission of the International Monetary Fund (IMF) will come to Belgrade next week to discuss a package of measures for fiscal consolidation.
The Minister said that the IMF will help the Serbian government evaluate ways for a better planning and collection of revenues, and for the planning and execution of budgetary expenditures.
Serbia is still not negotiating a new arrangement with the IMF, but it would be good to have one, especially a precautionary one, and not a loan arrangement, Kristic concluded.
Commenting on the assessment of the Serbian Fiscal Council that additional savings worth €300 million will be necessary for next year, the Minister underlined that the Council based this assessment on a supposition that the augmented collection of taxes, planned for 2014, will not work.
He announced that the restructuring of companies will be completed within next six to nine months, and that problems of big companies, such as Galenika and Zelezara Smederevo steelworks, will be resolved.
The government’s position is that this needs to be done in the given period because otherwise savings will not help and the budget will not be executed.
Krstic noted that the government is considering to limit the employment in the public administration and in other big systems, taking into account that the increase in the number of employees in the public sector is being recorded.
The Minister underlined that the Law on budgetary system, which will be discussed tomorrow at the Serbian government session, will define rules of employment of new people in the public administration, the Minister underlined.
According to him, at this moment no political consensus has been reached on applying more aggressive reforms of the pension system.
He added that a technical mission of the International Monetary Fund (IMF) will come to Belgrade next week to discuss a package of measures for fiscal consolidation.
The Minister said that the IMF will help the Serbian government evaluate ways for a better planning and collection of revenues, and for the planning and execution of budgetary expenditures.
Serbia is still not negotiating a new arrangement with the IMF, but it would be good to have one, especially a precautionary one, and not a loan arrangement, Kristic concluded.
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