"Salaries and pensions cuts unavoidable"

BELGRADE A reduction in public sector wages and pensions is an unavoidable savings measures, as otherwise it will not be possible to reduce Serbia's budget deficit. This is according to Loup Brefort, World Bank country manager for Serbia, Europe and Central Asia, who spoke on Monday. "Salaries and pensions cuts unavoidable" "This measure is unavoidable as Serbia's budget deficit is twice higher than expected and the payment of salaries and pensions accounts for more than 50 percent of the budget expenditures, so if something is not done here, Serbia will not be able to reduce its budget deficit and this could lead to a grave financial crisis," Brefort told reporters. According to him, the bad news is the budget deficit, double what was planned, but it is encouraging to see the government prepared to take very serious measures and to do so quickly. "We encourage the government to do so and we hope that these measures will be taken in June or not later than July, but certainly before the fall, because there is no time to lose," said Brefort. "If no action is taken soon, the scenario could be a rather bad one. But it seems that the government has recognized the gravity of the problem and is ready to take action quickly," the international financial institution's official was quoted as saying. "Serbia was in a recession last year, and this year we are still predicting an economic growth of two percent, or even more, and we can see that the country's exports are growing month after month, and that's good news," Brefort said. Tanjug

"Salaries and pensions cuts unavoidable"

"This measure is unavoidable as Serbia's budget deficit is twice higher than expected and the payment of salaries and pensions accounts for more than 50 percent of the budget expenditures, so if something is not done here, Serbia will not be able to reduce its budget deficit and this could lead to a grave financial crisis," Brefort told reporters.

According to him, the bad news is the budget deficit, double what was planned, but it is encouraging to see the government prepared to take very serious measures and to do so quickly.

"We encourage the government to do so and we hope that these measures will be taken in June or not later than July, but certainly before the fall, because there is no time to lose," said Brefort.

"If no action is taken soon, the scenario could be a rather bad one. But it seems that the government has recognized the gravity of the problem and is ready to take action quickly," the international financial institution's official was quoted as saying.

"Serbia was in a recession last year, and this year we are still predicting an economic growth of two percent, or even more, and we can see that the country's exports are growing month after month, and that's good news," Brefort said.