The third package of aid to the economy, adopted by the Government of Serbia, will prevent mass layoffs, is more selective than the previous one, but together with previously adopted measures aimed at suppressing the negative effects caused by the corona virus, will affect the budget deficit.
Milojko Arsic, professor at the Faculty of Economics in Belgrade, told Danas that the new package of measures will certainly mitigate the impact on the economy caused by the coronavirus epidemic, and that in that sense, state aid is useful to businessmen.
– The new measures will help save a certain number of jobs. I think that it is good that a system has now been introduced in which it is necessary for a businessman to apply for a monthly allowance every time. That way, some of them, who do not want to waste time dealing with administrative matters, will not even apply for this help. However, it must be stated that everything could be done with less spending of money from the state treasury so that the Government could direct it only to those sectors that really need it. Because more money was spent, because that help was directed to everyone in the economy, there will be a budget deficit – our interlocutor states.
Economist Milan R. Kovacevic also believes that this time a better or more selective way of providing assistance to the economy was chosen due to the negative effects caused by the corona virus epidemic.
– It was necessary to work like that from the beginning, so that only those who really need help get it. Now, since there is reporting, it will only go into the hands of those whose business is endangered. However, considering that the epidemic lasts longer than we predicted, it could not be stated that the current aid will be sufficient, ie that in the future the Government of Serbia will not have to adopt new packages of measures to support the economy – states Kovacevic.
According to him, a much better solution was for the Government to exempt employers from paying certain taxes and other duties. He states that in that way, the business would be relieved and companies would be able to overcome the crisis period more easily.
Nebojsa Atanackovic, honorary president of the Union of Employers of Serbia, says for Danas that it means to businessmen that the Government has brought a new package of measures that will make their business easier in the conditions of the crisis.
– It was announced that the approach this time will be more selective, so that is the reason why it is planned that companies that need help will apply for it with the competent authorities. This time, the emphasis was placed on the help that the most endangered sectors of the economy receive during the corona virus, which are motor transport and catering. More can be done in this regard. When I say that, I mean that the state could also help companies within one industry. These would be those companies that operated successfully before the outbreak, which is not the case since the crisis began. Those specific companies should receive additional help from the state – states Atanackovic. He also points out the fact that the epidemic of the corona virus is extinguished more slowly than expected, and that the state should continue to think about new measures of assistance so that the functioning of the economy would not be disrupted in crisis conditions.
At the session of the Government of Serbia on Thursday, all legal acts necessary for the implementation of the third package of measures to help the economy to remedy the consequences of the corona virus epidemic were adopted. This package includes payment for three months, half of the minimum wage for employees, as well as sector assistance. This time, large companies will be able to count on help, and not only small and medium-sized ones as before. The first payment will be on April 8. From March 1, a form will be established by which companies will apply each time for the payment of aid. Firms that receive state aid will not be able to lay off more than 10 percent of employees within three months of the last half of the paid minimum. Also, companies that receive assistance from the state are not entitled to dividend payments.
The catering, tourism and rental car sectors, in addition to the three halves of the minimum wage, will also receive another full minimum wage. The third package of assistance to the economy is worth 2.1 billion euros, Danas reports.
