"No reduction of wages or tax increase"

Deputy PM and Minister of Economy Mladjan Dinkic stated Monday that the government does not intend to cut salaries or pensions, or increase VAT. Instead, it will increase the budget deficit and reduce public administration, given the shortage of budget revenues. "No reduction of wages or tax increase" At the Belgrade Banking Academy meeting, Dinkic pointed out that reducing salaries and pensions in the conditions of the economic crisis would additionally reduce demand, whereas VAT increase would reduce economy's solvency. According to him, Serbia will increase the budget deficit during crisis, i.e. it will get into debt and reduce public administration, meaning there will be no cuts in salaries, but rather in the number of employees. Dinkic underscored that Serbia is far less indebted than some other European countries, adding that the average debt of the EU countries equals 100 percent of their GDP, while the budget deficit amounts to six percent, which is twice as much as Serbia's.

"No reduction of wages or tax increase"

At the Belgrade Banking Academy meeting, Dinkić pointed out that reducing salaries and pensions in the conditions of the economic crisis would additionally reduce demand, whereas VAT increase would reduce economy's solvency.

According to him, Serbia will increase the budget deficit during crisis, i.e. it will get into debt and reduce public administration, meaning there will be no cuts in salaries, but rather in the number of employees.

Dinkić underscored that Serbia is far less indebted than some other European countries, adding that the average debt of the EU countries equals 100 percent of their GDP, while the budget deficit amounts to six percent, which is twice as much as Serbia's.