Prime Minister Aleksandar Vucic stated today that the Serbian government has decided to implement a strategy that will bring development to Serbia and underlined that in the first two months of this year the state achieved a budget surplus of RSD 895 billion.
Addressing the participants of the Kopaonik Business Forum 2015, Vucic said that the key points of this strategy is that we start making money, to spend only what we earn, to reduce the fiscal deficit, to reduce the growing public debt and secure economic growth in the medium and long term.
The Prime Minister said that the Serbian government sticks to this programme almost entirely and that in the meantime Serbia passed systemic, modern laws in line with European practice, as well as a plan of fiscal consolidation.
This enabled Serbia to make a three-year precautionary arrangement with the International Monetary Fund (IMF).
He noted that today the state is paying the price of irresponsible economic policies, although measures have been taken to bring order into public finances.
He specified that in January and February 2013 the total deficit amounted to RSD 37.669 billion and in January and February 2014 it stood at RSD 36.294 billion, and that in the first two months of this year surplus was achieved.
The Prime Minister also said that in January and February of this year, a higher tax collection and higher employment were achieved, while the decline in capital expenditures in the first two months of this year poses a serious problem.
In 2013, RSD 2.130 billion were spent on capital expenditures and in 2014 RSD 1.615 billion, and this year RSD 540 million, Vucic said.
According to the Prime Minister, the solution to this problem are capital investments and investments in infrastructure such as the project of Belgrade – Budapest railway and Belgrade Waterfront, and everything else that could contribute to our positive GDP growth this year.
Vucic added that the problem of Petrochemicals Plant Pancevo has to be solved soon, and that the problems of chemicals producers – Pancevo Fertiliser Plant and Methanol-Vinegar Complex (MSK) in Kikinda will be solved before the first audit of the arrangement with the IMF.
He said that last year, despite all the difficulties with natural disasters, Serbia had a €1.300 billion in foreign investment, but he pointed out that it is bad that there is no domestic investment.
The Prime Minister said that the government will continue on the path that will turn Serbia into a normal and decent country, into a healthy economy, and this will change the path of its public debt by 2016.
We can do this before the end of mandate of the current government so that a new government could find a completely different and well-organised Serbia, Vucic concluded.
Source; Serbian Government
