"Govt. IMF agree over budget deficit"

Economy Minister Mlađan Dinkić said that the government and IMF will not have any problems reaching an agreement for Serbia’s 2010 budget.

Izvor: B92

Tuesday, 27.10.2009.

10:06

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Economy Minister Mladjan Dinkic said that the government and IMF will not have any problems reaching an agreement for Serbia’s 2010 budget. Dinkic said that the International Monetary Fund and the government have agreed as they met in Belgrade on Monday for a budget deficit that will be at four percent of the GDP, and not 3.5 percent as the IMF demanded earlier. "Govt. IMF agree over budget deficit" He said that "there will be no problem with the next budget", and that although budget revenue is better now than it was the last time an IMF mission visited, "maintaining the balance mid-term remains a challenge". “We agreed right at the beginning that the realistic budget deficit should be four percent instead of 3.5 percent, which was said last time,” Dinkic said. He added that the IMF did not insist on increased taxes and that the mid-term ramework for passing a strategy for taxation policies was an issue that was very important to the mission. The minister also claims that the IMF is not insisting on increasing the age limit for women retiring. “I focused their attention on the fact that it would not be appropriate to increase the age limit for women who want to retire, which is currently at 60, that it should stay at 60 years of age, and that there must be a difference between retirement for men and women, since women also take care of children and do a lot of work around the house, and work as well, and I think they should be able to retire early and that part of the pension reforms will not be considered,” Dinkic said. He continued that other aspects of pension reform are being discussed, but that this has more to do with meetings that the IMF will hold separately with Deputy Prime Minister Jovan Krkobabic and Labor and Social Policies Minister Rasim Ljajic. As far as the Serbian measures for overcoming the economic crisis are concerned, Dinkic said that the IMF has no objections, adding that there has been a growth in the GDP in the last quarter of 2.7 percent, in comparison to the last quarter. “The decrease in the GDP will be three percent by the end of the year, just as I had announced,” the minister said.

"Govt. IMF agree over budget deficit"

He said that "there will be no problem with the next budget", and that although budget revenue is better now than it was the last time an IMF mission visited, "maintaining the balance mid-term remains a challenge".

“We agreed right at the beginning that the realistic budget deficit should be four percent instead of 3.5 percent, which was said last time,” Dinkić said.

He added that the IMF did not insist on increased taxes and that the mid-term ramework for passing a strategy for taxation policies was an issue that was very important to the mission.

The minister also claims that the IMF is not insisting on increasing the age limit for women retiring.

“I focused their attention on the fact that it would not be appropriate to increase the age limit for women who want to retire, which is currently at 60, that it should stay at 60 years of age, and that there must be a difference between retirement for men and women, since women also take care of children and do a lot of work around the house, and work as well, and I think they should be able to retire early and that part of the pension reforms will not be considered,” Dinkić said.

He continued that other aspects of pension reform are being discussed, but that this has more to do with meetings that the IMF will hold separately with Deputy Prime Minister Jovan Krkobabić and Labor and Social Policies Minister Rasim Ljajić.

As far as the Serbian measures for overcoming the economic crisis are concerned, Dinkić said that the IMF has no objections, adding that there has been a growth in the GDP in the last quarter of 2.7 percent, in comparison to the last quarter.

“The decrease in the GDP will be three percent by the end of the year, just as I had announced,” the minister said.

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