Serbia sees huge public spending

Serbia will this year top the list of European states with the largest public spending. The NBS governor announces new measures.

Izvor: B92

Monday, 10.09.2007.

10:43

Default images

Serbia will this year top the list of European states with the largest public spending. The NBS governor announces new measures. While the finance minister expects public spending to continue to rise until the end of the year with the upcoming implementation of National Investment Plan (NIP) projects, experts warn it is very likely the inflation rate will go beyond the projected mark, and be between 8 and 10 percent. Serbia sees huge public spending The National Bank of Serbia (NBS) has already raised its benchmark interest rate from 9.5 to 9.75 percent and limited the payment period for cash loans, but Governor Radovan Jelasic says he will, if necessary, introduce additional measures to contain public spending by the end of 2007. Public or budgetary spending began to rise in the run-up to the January 21 parliamentary elections with an increase in salaries in the public sector. Several months later, pensions also shot up. As a result, the amount of money in circulation also rose, which prompted an increase in the price of goods and services. Despite numerous warnings from the Central Bank governor about the rise in public spending, the finance minister told B92 on Sunday that in the first seven months of 2007, a surplus of RSD 42bn in public spending had been registered. According to his forecast, public spending will continue to climb owing to the implementation of NIP projects. “However, we will make sure that salaries in the public sector see no additional increases this year. The government will do everything in its power to contain inflation, and has already taken measures to that end,” Cvetkovic explained. He added that the Competition Commission had already initiated procedures to determine why the price of basic foodstuffs had risen so sharply recently.

Serbia sees huge public spending

The National Bank of Serbia (NBS) has already raised its benchmark interest rate from 9.5 to 9.75 percent and limited the payment period for cash loans, but Governor Radovan Jelašić says he will, if necessary, introduce additional measures to contain public spending by the end of 2007.

Public or budgetary spending began to rise in the run-up to the January 21 parliamentary elections with an increase in salaries in the public sector. Several months later, pensions also shot up.

As a result, the amount of money in circulation also rose, which prompted an increase in the price of goods and services.

Despite numerous warnings from the Central Bank governor about the rise in public spending, the finance minister told B92 on Sunday that in the first seven months of 2007, a surplus of RSD 42bn in public spending had been registered.

According to his forecast, public spending will continue to climb owing to the implementation of NIP projects.

“However, we will make sure that salaries in the public sector see no additional increases this year. The government will do everything in its power to contain inflation, and has already taken measures to that end,” Cvetković explained.

He added that the Competition Commission had already initiated procedures to determine why the price of basic foodstuffs had risen so sharply recently.

Komentari 3

Pogledaj komentare

3 Komentari

Možda vas zanima

Podeli: