Minister hints at "even stricter measures"

Finance Minister Diana Dragutinović says new saving measures are necessary, unless the budget revenues "arrive as planned".

Izvor: Beta

Saturday, 11.04.2009.

10:51

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Finance Minister Diana Dragutinovic says new saving measures are necessary, unless the budget revenues "arrive as planned". The government last week introduced its plan to counter the economic crisis in the country, focused on cutting the numbers in the bloated state administration, and the salaries of those who work for the state, along with introducing a number of new taxes. Minister hints at "even stricter measures" "New measures are possible. I was against those that excluded some segments of the state, such education, judiciary, health, police, army, from the wage cuts. It is my stance that all those employed by the state must share the same destiny," she told daily Vecernje Novosti in an interview published on Saturday. Dragutinovic believes that the latest government plan will help decrease public spending, and added that she is satisfied with the measures that "although not popular, are good for the country in the long term". The minister also explained that the program will be revised once in three months, when the government and the IMF will produce analyses of the plan and its implementation. "Should the results prove better, should we stop the recession, a different fiscal policy is possible. But, we expect this package to remain in force until the end of the year." The first review of this year's state budget is expected to be adopted next week, Dragutinovic said, and voiced her hope that "another one won't be needed". The government package of measures will cause inflation only where it concerns the increase of excise duty, she told the newspaper. Asked whether there will be sackings in her ministry, Dragutinovic said that "all the government's recommendations will be honored". "But, a bigger problem for me is that I was convinced there were 460,000 employees in public sector, while statistics say there are 516,000. That means we have over 50,000 'invisible' employees that the state sets aside a huge amount of money for. For this reason, the priority is to solve this problem, rather than whether we have a few state secretaries too many," believes this minister.

Minister hints at "even stricter measures"

"New measures are possible. I was against those that excluded some segments of the state, such education, judiciary, health, police, army, from the wage cuts. It is my stance that all those employed by the state must share the same destiny," she told daily Večernje Novosti in an interview published on Saturday.

Dragutinović believes that the latest government plan will help decrease public spending, and added that she is satisfied with the measures that "although not popular, are good for the country in the long term".

The minister also explained that the program will be revised once in three months, when the government and the IMF will produce analyses of the plan and its implementation.

"Should the results prove better, should we stop the recession, a different fiscal policy is possible. But, we expect this package to remain in force until the end of the year."

The first review of this year's state budget is expected to be adopted next week, Dragutinović said, and voiced her hope that "another one won't be needed".

The government package of measures will cause inflation only where it concerns the increase of excise duty, she told the newspaper.

Asked whether there will be sackings in her ministry, Dragutinović said that "all the government's recommendations will be honored".

"But, a bigger problem for me is that I was convinced there were 460,000 employees in public sector, while statistics say there are 516,000. That means we have over 50,000 'invisible' employees that the state sets aside a huge amount of money for. For this reason, the priority is to solve this problem, rather than whether we have a few state secretaries too many," believes this minister.

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