Serbia is looking at an ambitious deficit reduction plan and a reform package that would not be possible without the International Monetary Fund (IMF), said Fiscal Council President Pavle Petrovic.
Commenting on the Monday’s decision of the IMF Executive Board to approve a three-year stand-by arrangement for Serbia, Petrovic said that the country is at the start of a three-year journey and facing great challenges.
One of the risks is the reform of the public sector, which is funded from the budget, considering that it will entail job cuts along with reform measures, Petrovic told RTS on Tuesday, adding that the reforms will also include education, health care and public administration, in order to increase the sector-wide efficiency.
He warned that the risks are serious, and pointed out that reform of the public and state-owned enterprises poses the greatest professional, political and social challenge.
“So far, we have not been able to tackle this problem, but if we do not solve it, any savings brought about by cuts in pensions and public sector salaries will be offset,” the Fiscal Council president said.
“With the support of the IMF, we now have a good opportunity to finally address this issue, and that would be a major success. In addition to fiscal and budget savings, it would be a reform that would greatly contribute to bringing order into a very important part of Serbia’s economy,” said Petrovic.
Source; SerbGov
