Under its austerity plan for 2015, the Serbian Railways should cut around RSD 2.87 billion of costs compared to total expenditures last year.
The austerity plan was made pursuant to government instructions and recommendations from the World Bank due to subsidies being RSD 2 billion lower than last year.
The austerity plan envisions lower expenditures for salaries – around RSD 860 million for gross earnings, the Serbian Railways said in a statement on Monday.
The cuts, which amount to nearly 50 percent of the total cost cuts, will primarily be due to the departure of 969 employees last year.
Other personal earnings will be lower by around RSD 111 million, accounting for more than five percent of the total cuts planned.
A reduction of the nearly RSD 238 million electricity bill is also planned pursuant to a new agreement with the Serbian electric power company EPS, under which one KWh of electricity will be charged RSD 4.939, rather than the RSD 7 that the Serbian Railways was paying for “backup supplies.”
The Serbian Railways will this year save around RSD 135 million in fines, damages and penalties for railway projects.
Source; SerbGov
