WB urges cuts in public spending

Serbia's budget next year should reduce the public spending, the World Bank (WB) experts say. The public spending should be cut primarily through further reforms of education and pension insurance sectors, World Bank representative Cheryl W. Gray said Friday. WB urges cuts in public spending "Serbia continues to have a problem with the overall salary fund in the public sector, which is by far the biggest in the region," Gray said presenting the results of a research into the effects of fiscal policy on economic growth conducted in Eastern Europe and Central Asia, the so-called ECA region. Noting that Serbia has a big inflow of privatization revenue, Gray, the director of the WB's ECA macro economy sector, pointed out the challenges of developing a balance of how these funds are spent. "The major question is how to continue the reforms, in view of the huge trade deficit, and that the monetary policy cannot be pressured," Gray said. As for the fiscal policy, she recommended a reduction of taxes on salaries and taxing spending in order to open up possibilities for boosting employment. The lecture Friday was organized by the Fund for the Development of Economic Sciences and the Faculty of Economy of the Belgrade University.

WB urges cuts in public spending

"Serbia continues to have a problem with the overall salary fund in the public sector, which is by far the biggest in the region," Gray said presenting the results of a research into the effects of fiscal policy on economic growth conducted in Eastern Europe and Central Asia, the so-called ECA region.

Noting that Serbia has a big inflow of privatization revenue, Gray, the director of the WB's ECA macro economy sector, pointed out the challenges of developing a balance of how these funds are spent.

"The major question is how to continue the reforms, in view of the huge trade deficit, and that the monetary policy cannot be pressured," Gray said.

As for the fiscal policy, she recommended a reduction of taxes on salaries and taxing spending in order to open up possibilities for boosting employment.

The lecture Friday was organized by the Fund for the Development of Economic Sciences and the Faculty of Economy of the Belgrade University.