Prime Minister Aleksandar Vucic says he “insists on the increase of salaries and pensions,” announcing that this issue would be opened in August.
In an interview for the Belgrade-based Television B92 late on Sunday, Vucic said that he insists on this matter because it would serve as a major incentive for the Serbian economy since higher consumption would contribute to an increased VAT collection, which will lead to higher allocations for capital investments.
By the end of the government’s mandate, salaries and pensions will be higher than they were before, in stable conditions and with growth and fiscal deficit equivalent to that of Maastricht, the prime minister said.
Vucic said that Serbia is far below the lowest regional standard and noted that it has excellent results as RSD 60 billion worth of savings were made in the budget in the first five months of the year.
In case the plans are realized, the deficit will total 3.28 percent of the GDP. The prime minister said that the public debt would range up to 79 percent, but will be reduced by the end of the government’s mandate.
Serbia has a primary surplus since it is earning more than it is spending, but we have a problem with horrible interest rates and we annually pay EUR 1.2 billion for interests alone, Vucic said.
Source; B92
