MALI: RSD 330 billion for capital public investments next year

Funds of RSD 330 billion, or 5.5% of the GDP, are planned for capital public investments within the next year’s budget, said Serbian Finance Minister Sinisa Mali. He reminded that, in the previous year, the amount had been 4.9% of the GDP, and that, in 2020, it was 5.2%.

– So, not only are we not stopping projects due to Covid-19, but we are setting aside even more for roads, railways, industrial parks, bridges, sewer and water networks, waste water treatment facilities… State investments in infrastructure then stimulate private investments as well. Another big investment is also the planned increase of salaries and pensions. Also, we have been reducing unnecessary costs for years now, we are saving on representations, travel, fuel and other items.

He says that the pandemic has not had a negative impact on the inflow of direct foreign investments.

– In an absolute sense – no, no investor has given up on investing in Serbia, some have merely moved the plans for several months. In the first nine months of this year, we had 1.9 billion of direct foreign investments. More than 60% of everything that entered the Western Balkans came to Serbia.

The total state aid to the economy and the citizens since the beginning of the pandemic crisis, including the new package of measures planned in several days, will amount to RSD 700 billion, that is, EUR 6 billion, Mali says.

– It is around 12.7% of our gross domestic product and there are few countries in the world that have implemented such strong measures – Mali said in his interview for Novosti.

Regarding the decision to pay RSD 5,000 to each of around 1.7 million pensioners, as well as one minimum wage to workers in hospitality, hotel business, tourism and rent-a-car agencies, on December 17-18, Mali says that the funds come from the improved tax collection.

– In late November, the VAT collection was better than expected, which is extremely good news. We have a responsible economic policy, and the measures we are adopting are directed at those who need help the most.

According to him, Serbia has avoided the worst-case scenario that some countries are facing.

Ministarstvo finansija Republike Srbije

Siniša Mali

capital public investments

inflow of direct foreign investments

foreign investments