Dinkić: Deficit increase appropriate
Minister of Economy Mlađan Dinkić says it is unrealistic to expect Serbia to end this year with a deficit of 1.5 pct of the GDP.
Saturday, 21.02.2009.
18:38
Minister of Economy Mladjan Dinkic says it is unrealistic to expect Serbia to end this year with a deficit of 1.5 pct of the GDP. Instead, the country should look to increase the figure to 2.5-3 percent, Dinkic told Blic Novac magazine. Dinkic: Deficit increase appropriate “It is unrealistic to expect Serbia to end this year with a deficit of 1.5 perncet. Much more developed countries will be unable to close the year with a three-percent deficit, let alone 1.5 percent." "Romania has gone up to 7 percent, and we should not follow suit, but I believe that the deficit level between 2.5 and 3 percent of the GDP is appropriate for this situation,” Dinkic said. According to him, Serbia's deficit could be financed from foreign loans and in the securities market. Dinkic spoke against the VAT level hikes, and said that a reduction of pensions and wages is "out of question" – but that "some other expenditure should be cut and, probably, the budget deficit increased".
Dinkić: Deficit increase appropriate
“It is unrealistic to expect Serbia to end this year with a deficit of 1.5 perncet. Much more developed countries will be unable to close the year with a three-percent deficit, let alone 1.5 percent.""Romania has gone up to 7 percent, and we should not follow suit, but I believe that the deficit level between 2.5 and 3 percent of the GDP is appropriate for this situation,” Dinkić said.
According to him, Serbia's deficit could be financed from foreign loans and in the securities market.
Dinkić spoke against the VAT level hikes, and said that a reduction of pensions and wages is "out of question" – but that "some other expenditure should be cut and, probably, the budget deficit increased".
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