VUJOVIC: Thursday to see budget rebalance

Serbian Minister of Finance, Dusan Vujovic, has outlined that today this year’s budget rebalance containing savings measures will be presented on Thursday, September 18.

- The Government of Serbia aims at decreasing current deficit of EUR 2,5 billion to one billion by 2017– Vujovic said at the round table of the Budget rebalance and excise goods, organized by weekly NIN.

As he outlined, estimations of the most acceptable savings measures have been in progress so that all citizens could be affected equally i.e. the poorest ones protected.

According to Vujovic, now the state is liquid when it comes to its liabilities but it takes savings measures s that it does not het to the situation that creditors dictate future moves.

Savings measures which 2015 budget proposal will contain and which will soon be prepared, will be based on, as Vujovic said, four pillars – budget expenditures cuts, grey economy decrease, development of fiscal system and better organization of Tax directorate and increase in public companies ‘efficiency .

Vujovic confirmed that the state in the future will not provide subsidies for farmers with more than 100 hectares of land or the ones who rent it, and branches which contribute the most to budget profit increase will get the highest subsidies.

According to his estimation, this year, GDP will fall for 0,5 -1%.

President of the Fiscal Council of Serbia, Pavle Petrovic, said that linear salaries and pensions cuts of 15% in public sector would be the fastest way to provide budget deficit decrease.

As he said, the Fiscal Council estimates that in the next three years, budget deficit must decrease for at least EUR 1, 7 billion which would affect country’s credibility boost.

- More efficient fight against grey economy could increase budget profit for some EUR 350 m – Petrovic said and recommended headcount decrease in public sector.