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Home/News/Excessive pandemic deficit justified, Serbia should help the economy

Excessive pandemic deficit justified, Serbia should help the economy

The Fiscal Council said the most important task of the budget during the coronavirus pandemic is to finance the costs of fighting for the life and health of Serbian citizens, and to support a one-off and temporary increase in the budget deficit and public debt, while the crisis is ongoing.
Fiscal Council member Vladimir Vuckovic told N1 that it is justified for the state to allocate part of the budget money for financial support and tax relief to economically disadvantaged sections of the population and the economy, although it is clear that the cost will become public debt.
“The private sector, employers and employees are the most vulnerable. In economic terms, they suffer the most damage, and immediately after health care, which is normally the first place, the state from the budget should think about how to help the private sector and businessmen”, Vuckovic said.
He believes the state’s first move will be to relieve employers of labor.
“The options are different, some time should be left for the Ministry of Finance to come up with concrete proposals, but the state should take on commitments and contributions for employees, thus sharing the costs of this crisis with the private sector and the state sector”, Vuckovic said for N1.