The Minister of Finance, Sinisa Mali, stated that it is absolutely possible to achieve a GDP growth rate of six percent, which is foreseen in the budget proposal for 2021.
At the session of the Parliamentary Committee on Finance, Mali said that the budget for 2021 relies on two pillars, one is the continuation of raising the standards of citizens and the commitment to the Serbia 2025 program, which envisages investments of 14 billion euros in infrastructure, as well as an average salary of 900 euros and a pension of 430 euros by the end of 2025.
In the general discussion of the Draft Law on the Budget of the Republic of Serbia for 2021, Mali said that from January 1, 2021, an increase in pensions of 5.9 percent is expected, as well as an increase in salaries for health care employees by five percent, and for other employees in public sector of 3.5 percent and an additional 1.5 percent in April 2021.
Also, for soldiers from April, an additional increase of 10 percent, said Mali.
He said that in 2021, the minimum salary will increase by 6.6 percent.
“We are directed towards the citizens to feel the burden of the economic crisis to the least extent, and it is important for us to leave or raise the level of domestic demand in order to provide economic activities,” said Mali.
The Minister said that the growth rate at the end of 2019 was 6.2 percent, or 5.2 percent in the first quarter of 2020, when quarantine took place, and that a possible GDP growth rate of six percent next year, precisely because of the large investment in capital investment.
The Minister reminded that the Government of Serbia together with the NBS reacted immediately after the pandemic of Covid 19 with the aim of minimizing the negative effects and adopted a package of measures in the total amount of over six billion euros, which is 12,7 percent of GDP.
He added that a small number of countries can boast of efficient and timely assistance, emphasizing that these are the assessments of the IMF and the European Commission.
“For the first time in the history of the state, it is taking on the greatest burden of the crisis and enabling the economy to continue living,” Mali pointed out.
He reiterated that on December 17 and 18, the state will pay pensioners assistance in the amount of 45 euros each.
He added that one minimum wage will be paid to workers in the hospitality, hotel, tourism and rental agencies.
“The projected deficit is 1.48 million euros, which is three percent of GDP, which we predicted after a careful analysis. The IMF said that this is the level of deficit that gives us a reduction in the share of public debt in GDP, despite an increase this year due to the situation with Next year we are going to reduce it again.”
The Minister points out that the draft budget envisages even greater investments in agriculture, culture and health due to the construction of infrastructure and procurement of equipment.
He said that the list of investments in 2021, which are planned in the budget, includes many projects – construction of the Moravian Corridor, highway Preljina-Pozega, highway Kuzmin – Sremska Raca, highways Iverak-Lajkovac, highway Nis-Plocnik, highway Ruma- Sabac-Loznica.
He says that the construction of the Frushkogorski corridor will start next year, while the project “Vozd Karadjordje”, which will connect Sumadija with eastern Serbia, is being worked on, which will be completed next year, and the realization will begin in 2022.
Mali says that after several decades, in 2021, the project of building a subway in Belgrade will start.
Then, the construction of health centers in Loznica, Arandjelovac, Smederevska Palanka and Vranje.
Also, the completion of KC Serbia in Belgrade, construction of KC Vojvodina and KC Kragujevac, the Minister added.
“We are doing everything that is important for the quality of life of the citizens, and above all the road and railway infrastructure,” he emphasized.
He points out that the construction of the Belgrade-Novi Sad high-speed railway will be completed.
Mali emphasizes that the budget proposal envisages total capital investments of 2.75 billion euros, which is 5.5 percent of GDP for next year, while in 2010 they were only 3.1 percent.
“It is precisely this high level of capital investments that should enable us to achieve the planned growth rate of six percent next year, as well as the planned high rates for the following years,” the Minister of Finance emphasized, B92 reports.
