NBS chief unhappy with budget revision

The budget review approved this week has not taken into account the country's economic realities, Radovan Jelasic says. The National Bank of Serbia (NBS) governor also said yesterday in Belgrade that Serbia looks to spend more than it can produce. NBS chief unhappy with budget revision Economic experts have voiced their criticism in the wake of the government's budget decision, which they say has ignored the global financial crisis, inflation and the issue of huge public spending. The revision will see a RSD 5bn increase in this year's budget deficit. Jelasic said that the government failed to listen to the central bank's and international financial institutions' recommendations that said restrictive measures should have been introduced instead. However, he added that "all could be regulated with the 2009 budget, that ought to take into account Serbia's economic realities". Experts agree that the greatest burden on the budget now comes from pensions, that will go up ten percent, but also from increased subsidies for farmers. Jelasic also sent a message to Serbians yesterday that they have "no reason to fear" the ongoing international financial meltdown. "The cash is here, our hard currency reserves have been placed in first rate banks. Our banking sector's liquidity gives us plenty of reason to sleep in peace," Jelasic reassured his audiences during a forum held in Belgrade on Saturday.

NBS chief unhappy with budget revision

Economic experts have voiced their criticism in the wake of the government's budget decision, which they say has ignored the global financial crisis, inflation and the issue of huge public spending.

The revision will see a RSD 5bn increase in this year's budget deficit.

Jelašić said that the government failed to listen to the central bank's and international financial institutions' recommendations that said restrictive measures should have been introduced instead.

However, he added that "all could be regulated with the 2009 budget, that ought to take into account Serbia's economic realities".

Experts agree that the greatest burden on the budget now comes from pensions, that will go up ten percent, but also from increased subsidies for farmers.

Jelašić also sent a message to Serbians yesterday that they have "no reason to fear" the ongoing international financial meltdown.

"The cash is here, our hard currency reserves have been placed in first rate banks. Our banking sector's liquidity gives us plenty of reason to sleep in peace," Jelašić reassured his audiences during a forum held in Belgrade on Saturday.