Salary raises in public sector in January, ban on employments throughout 2017 – Government planning budget debt of RSD 858.8 billion

Employees in a part of the public sector in Serbia will have their salaries raised in January 2017, and the ban on employments in public service will be extended till the end of 2017, as envisioned by the amendments to the Budget System Law submitted to the Assembly by the Government for a summary adoption.

An increase by 5% has been proposed for salaries in the police, military, judiciary, science and research, cultural institutions and social and health protection.

Salaries in pre-school institutions are to be raised by 6%, as are salaries in primary and secondary schools and student standard institutions, whereas employees in higher education institutions will have their earning raised by 3%.

Amendments to the Budget System Law also envisions the raising of pensions by 1.5% starting in January, and this raise, as well as those in the public sector, have been explained by better fiscal consolidation results than expected.

It has been estimated that RSD 18 billion will be needed in the budget for this purpose.
The Government has proposed the ban on public sector employments, implemented in December 2013, to be extended throughout 2017, as it has been estimated that controlled employments contribute to fiscal stabilization.

Government planning budget debt of no more than RSD 858.8 billion in 2017

The Government of Serbia is planning to incur debt of around RSD 858.8 billion in 2017 in order to finance the budget deficit and repay the principal amount of the loan taken out from local and foreign creditors for direct and indirect liabilities of the state. The maximum indebtedness planned for 2016 was RSD 662 billion.

The budget proposal for the next year envisions that loans from local and international financial institutions and foreign governments shouldn’t exceed RSD 150.2 billion, whereas, in 2016, the limit was set to RSD 90.1 billion.

By issuing bonds in the local market in both local and foreign currency, the state will incur debt of RSD 583.5 billion (in 2016, the maximum was RSD 450 billion), and by selling EUR-denominated bonds in the foreign market, the state will secure RSD 124.5 billion (RSD 122.5 billion in 2016).

Vlada Republike Srbije

budget of Serbia

public sector in Serbia

ban on employment

Budget System Law

raising salaries

raising pensions

raising salaries in the public sector

budget debt

budget deficit

government bonds

euro denominated bonds

dinar denominated bonds

budget 2017