PM: Public sector reform proposal

PM Mirko Cvetković says the government is not entering talks with the International Monetary Fund (IMF) with a proposal to increase VAT or income tax rates.

Izvor: Tanjug

Thursday, 20.08.2009.

09:47

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PM Mirko Cvetkovic says the government is not entering talks with the International Monetary Fund (IMF) with a proposal to increase VAT or income tax rates. Instead, Serbia will propose full reform of the state administration, "that is, of the public sector as a whole". PM: Public sector reform proposal "A preliminary analysis is currently being developed to offer certain guidelines. It does not include only wage reduction but also a reform that should lead to a more efficient public sector," said Cvetkovic in an interview published by Belgrade daily Blic today. Cvetkovic clarified that the number of public sector employees will be reduced "parallel with the improvement of the efficiency of the overall public administration, which means that new jobs will be created at the same time others are being made redundant. The new jobs will be created in keeping with our activities in the process of European integrations." "The principle will be used by the administration at the republic and local level, in public companies, education and health systems," said Cvetkovic. According to him, this task may not be completed in a couple of months but that it is a long-term project, which will be discussed with partners from the IMF, who are due to arrive in Belgrade on August 24. The prime minister also denied that Serbia's public debt was over 50 percent, and said the figure is some 30 percent.

PM: Public sector reform proposal

"A preliminary analysis is currently being developed to offer certain guidelines. It does not include only wage reduction but also a reform that should lead to a more efficient public sector," said Cvetković in an interview published by Belgrade daily Blic today.

Cvetković clarified that the number of public sector employees will be reduced "parallel with the improvement of the efficiency of the overall public administration, which means that new jobs will be created at the same time others are being made redundant. The new jobs will be created in keeping with our activities in the process of European integrations."

"The principle will be used by the administration at the republic and local level, in public companies, education and health systems," said Cvetković.

According to him, this task may not be completed in a couple of months but that it is a long-term project, which will be discussed with partners from the IMF, who are due to arrive in Belgrade on August 24.

The prime minister also denied that Serbia's public debt was over 50 percent, and said the figure is some 30 percent.

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