“Govt. works to alleviate crisis effects”

PM Mirko Cvetkovic on Saturday stated that the government is investing maximum efforts to alleviate the effects of the global financial crisis in Serbia. In an interview for Tanjug news agency, he underlined that the 2009 budget will not be as restrictive as to call for “a drastic self-sacrifice of citizens”. “Govt. works to alleviate crisis effects” "It will certainly not be a crisis similar to that of the 1990s in Serbia, but it will be a temporary slow down of the economic growth," Cvetkovic said. He specified that the 2009 budget will be aimed at stabilization and development, because the government does not wish to give up its development strategy, “and it is estimated that Serbia is not in such a position that it cannot achieve that”. Saving, however, is necessary on all levels, said the prime minister, clarifying that austerity is planned in the segment of the budget where expenditure is the highest, and in the part of the expenditure that has no macroeconomic impact but could be used as a "model". "For example, representation allowances will be cut," as well as reduction of wages in administrative and supervision committees of companies founded by the state, said Cvetkovic. In regards to pensions, a decree on their special increase of 10 percent will be in force next year, which, together with a regular increase of five percent is a total increase of 15 percent. The wages of the public sector employees will be increased according to the increase of living expenses but not more than eight percent, which is the projected inflation rate for the next year, said Cvetkovic. In regards to subsidies and other expenditure, the government will try to include all subsidized public companies with measures of saving, said Cvetkovic, pointing to Serbia's railway enterprise Zeleznice Srbije, whose monthly subsidies from the budget have been enormous for years, as an example. “Such public companies must be reformed soon and start earning money,” underscored Cvetkovic. Mirko Cvetkovic (Tanjug)

“Govt. works to alleviate crisis effects”

"It will certainly not be a crisis similar to that of the 1990s in Serbia, but it will be a temporary slow down of the economic growth," Cvetković said.

He specified that the 2009 budget will be aimed at stabilization and development, because the government does not wish to give up its development strategy, “and it is estimated that Serbia is not in such a position that it cannot achieve that”.

Saving, however, is necessary on all levels, said the prime minister, clarifying that austerity is planned in the segment of the budget where expenditure is the highest, and in the part of the expenditure that has no macroeconomic impact but could be used as a "model".

"For example, representation allowances will be cut," as well as reduction of wages in administrative and supervision committees of companies founded by the state, said Cvetković.

In regards to pensions, a decree on their special increase of 10 percent will be in force next year, which, together with a regular increase of five percent is a total increase of 15 percent.

The wages of the public sector employees will be increased according to the increase of living expenses but not more than eight percent, which is the projected inflation rate for the next year, said Cvetković.

In regards to subsidies and other expenditure, the government will try to include all subsidized public companies with measures of saving, said Cvetković, pointing to Serbia's railway enterprise Železnice Srbije, whose monthly subsidies from the budget have been enormous for years, as an example.

“Such public companies must be reformed soon and start earning money,” underscored Cvetković.