The state account for next year has allocated as much as 2.75 billion euros for capital investments, in relation to about 2 billion euros, which was this year.
The budget for 2021 is undoubtedly developmental and consolidation, the director of the Republic Bureau of Statistics, Miladin Kovacevic, assessed for Kurir. First of all, the state account for 2021 will bring benefits to the citizens, bearing in mind that it envisages an increase in living standards, starting from the salaries of health workers, to increases in the public sector, but also the growth of the minimum wage.
Income growth
However, the growth of employee income is only one item that was taken into account. Also, the budget for next year envisages tax relief for work and faster development of the economy, and there are also significant investments in important infrastructure projects, such as one of the most important, the Belgrade metro, as well as health care. Agriculture was also taken into account, for which larger funds were also allocated, as well as education, and there will be work on numerous schools throughout Serbia. The budget also includes places for significant funds for the IT sector and science, for environmental protection, as well as for culture. Certainly, the most important fact is that the budget for next year has allocated as much as 2.75 billion euros for capital investments, in relation to about 2 billion euros, which was determined for that purpose by this year’s budget.
Miladin Kovacevic says for Kurir that the budget is consolidation, while this year it was expansive due to multiple packages of assistance to the economy, which was reflected in the dynamics of economic activity.
– Now we are returning from the general government deficit of 8.9 percent of GDP to the deficit of about three percent of the projected GDP. Also, the next year can be viewed with optimism because we expect the worst episodes of the epidemic to pass and intensive immunization of the population at the beginning of 2021. The budget is also extremely socially progressive, because it increases salaries and pensions by 5.9 percent, within the public sector the minimum wage by 6.6 percent, as well as all other minimum wages, and especially increases investments and wages in the health sector – concluded Kovacevic for our paper.
Key 10 points of the budget for 2021.
1. Improving the living standards of citizens
From January 1, pensions will be increased by 5.9 percent, and the salaries of health workers by five percent. For other employees in the public sector, salaries will be higher by 3.5 percent from the beginning of the year, and from April 1 by a total of five percent. The minimum salary will be higher by 6.6 percent, and instead of the previous 250 euros, it will be 265 euros.
2. Allocations for traffic infrastructure
One of the most important projects is the construction of the Belgrade metro, and a memorandum of cooperation between the Chinese and French sides is expected to be signed in January, while work on the Makikso polje is expected to begin at the end of 2021.
3. Healthcare
The construction of the new UDC “Tirsova 2” is planned, as well as the reconstruction of clinical centers in Belgrade, Novi Sad and Kragujevac. Hospitals throughout Serbia will be reconstructed through the Public Investment Office – Arandjelovac, Loznica, Smederevska Palanka, Vranje, Vrbas, Kikinda, Pirot, as well as health centers in Vrnjacka Banja, Majdanpek, Valjevo, Novi Sad.
4. Tax relief of labor and faster development of the economy
It is planned to increase the non-taxable part of gross salary from 130 euros to 150 euros from January 1, and the adoption of a new law on fiscalization is expected, the implementation of which will begin on January 1, 2022, which envisages fiscalization of each account at the time of retail trade and to transfer data to the Tax Administration in real time, which additionally suppresses the gray economy. Subsidies for fiscal cash registers in the amount of 25 million euros are also planned.
5. Agriculture
Most money is allocated for incentives for direct payments (incentives for livestock, crop production) and rural development measures (procurement of equipment and tractors, organic production)
6. Education
18.3 million euros have been allocated for works on schools throughout Serbia, and 100 school gyms will be equipped. The realization of the project “Connected schools” continues, ie investment in the development of information and communication infrastructure in primary and secondary schools.
7. Science and IT
The construction of a data center in Kragujevac is planned and 2.08 million euros have been provided for the completion of the second phase of the Science and Technology Park in Novi Sad, as well as the continuation of support in the work of the Science and Technology Parks in Nis, Cacak and Belgrade. Also, IT retraining for 1,000 participants.
8. Environment
It is planned to build new regional waste management systems, in eight local self-government units, as well as 200 million euros for the construction of new wastewater treatment plants and sewerage network in 28 local self-government units. Also, the replacement of existing boiler rooms from solid fuel to environmentally friendly fuels in the heating plant Kragujevac, and 30 million euros were allocated for the implementation of the project “Rehabilitation of district heating systems in Serbia, phase five” and 20 million euros for “Energy efficiency project in public facilities“.
9. Culture
2.5 million euros have been allocated for the renovation of the Petrovaradin Fortress, and the funds for financing the project “Novi Sad 2021 – European Capital of Culture” have been increased by 420 thousand euros. In relation to the initial budget for 2020, the funds for financing and co-financing projects in the field of culture and information through public competitions have been increased.
10. Sports and youth
Money was set aside for the completion of the multifunctional hall – the national training center for six sports in Kosutnjak. Funds provided for the construction of halls, trim tracks, outdoor gyms in a minimum of 15 local governments. Funds have been allocated for major international competitions that Serbia will host, and the number of scholarships of the Fund for Young Talents has been increased from 1,410 to 1,500, Kurir reports.
