Situation of public finances and plans for the consolidation of the Serbian economy


Minister of Finance and Economy of the Republic of Serbia Mladjan minister said that Serbia has not officially announced the recession, but that the official statistics show that Serbia has had a decline in gross domestic product (GDP) for two consecutive quarters as follows: GDP decline in the first quarter of 1, 3 percent, and 0.6 percent other.
He said today that preparations are underway for the budget review and adoption of the budget at the same time in 2013. Year.
"The deficit of the consolidated accounts of the state is above the seven per cent of GDP, while the state budget is in deficit of 6.4 percent of GDP, which is far more than agreed with the IMF," he said, adding that the IMF was agreed that the budget deficit end of 2012. Be 4, 25 percent of GDP. "This year has been lost in terms of reducing the budget deficit, but in the next year it will be reduced to around 100 billion, according to Minister of Finance and Economy.

The minister said that during the preparation for the adoption of a set of measures, both on the expenditure and on the revenue side of the budget, which will be embodied in the form of 17 laws and added that the proposed legislation will be in the Serbian Parliament in September, and most of the measures will come into force in October. Minister of Finance and Economy said that the effects of these measures can not feel this, but only at the beginning of next year. Stressing that the plan was not to make unilateral measures only increase some tax burdens, but also to reduce expenses, the minister said that the planned elimination of about 256 para-fiscal levies.

"This will be legally barred from any country other than the Ministry of Finance introduced any taxes and fees, and it will stop in October," said the Governor.
He said that during the contracting funds for Serbia totaling around two billion euros and announced the arrival of the delegation of the International Monetary Fund, with which to negotiate a completely new arrangement.

"We are on course to arrange liquid investments that will ensure the regular payment of salaries and pensions," said the Governor, adding that it is a means from foreign sources. "The two billion euros lower partly related to the capital market and smaller portions will be borrowing by issuing securities," the Governor said, adding that the plan remains to be issued Eurobonds this year. "There will be no cuts in wages and pensions, which will be adjusted to the situation in the economy and there will be layoffs in the public service during the crisis," repeated the Governor, adding that it will know more about that after talks with union representatives.

He said he had invited the IMF - to come to Serbia and from the discussions with them, it became apparent that the previous freeze precautionary arrangement has no more effect for the country, so it will go in a completely new arrangement with the Fund.

When asked about yesterday's decision by the U.S. credit rating agency "Standard and Poor" to lower long-term credit rating by one notch Serbia, from BB to "BB -" with a negative outlook, the minister said the improved rating of our country depend on the fulfillment of the plan to reduce the budget deficit and the success of economic recovery and exit from recession.

When it comes to pensions, the minister announced that they will follow the wage growth, adding that the first installment of the 13th Benefits will be paid between 17 I 19 September.

He said that the National Bank of Serbia expects a coordinated policy with the Ministry of Finance, in order to preserve macroeconomic stability.

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