MALI: Serbian budget features EUR 450 million more than planned

The IMF's confirmation of the new arrangement with Serbia is very important news and a confirmation of the country's remarkable economic results, as well as proof that the public finances are consolidated, Serbian Finance Minister Sinisa Mali stated today.

He told RTS that the arrangement with the IMF was advisory in character, which means that it doesn't entail any monetary funds, which Serbia doesn't need at the moment anyway.

– In the first six months, we have a budget surplus of RSD 30.9 billion, which amounts to 1.4% of our GDP, and the plan was to have over 20 billion, which means that we have EUR 450 million more than planned. Let me remind that, in 2013, the budget deficit amounted to 6.6% – Mali said.

According to him, the IMF has seen this and now wants to help the country enhance its economy in a different way.

– We expect three things from this arrangement – the strengthening of institutions, the strengthening of our economy's competitiveness and the acceleration and increase of our high growth rate in the years to come – Mali said.

He reminded of Eurostat's report on the state of the region, which puts Serbia ahead of not just the countries in the region, but some EU countries as well.

– We have a budget surplus in the first three months of 0.4% of the GDP and the share of the public debt in the GDP is below 60%, whereas the share of Croatia's public debt in their GDP is 76.2%. In Romania, it is 98%, and in Hungary – 74%. These are official EU statistics, which says that Serbia is fully economically stable – Mali said.

He added that Serbia had difficult talks with the IMF about the raising of salaries and pensions ahead of it, but that, considering the results, there was room for somehow paying back those who had shouldered the biggest burden of the reforms, but on healthy foundations.

– In September, we will know exactly when and by how much, but these results put Serbia in the leading position in the region – the finance minister said.

Ministarstvo finansija Republike Srbije

Međunarodni monetarni fond-MMF Beograd

EUROSTAT

Sinisa Mali

IMF

Eurostat

arrangement of Serbia with the IMF

budget of Serbia