"Government has back-up plan"
Finance Minister Diana Dragutinović says that though the new anti-crisis measures will be sufficient, the government nonetheless has a back-up plan.
Tuesday, 05.05.2009.
09:47
Finance Minister Diana Dragutinovic says that though the new anti-crisis measures will be sufficient, the government nonetheless has a back-up plan. She said that this back-up plan was part of the program with the International Monetary Fund (IMF). "Government has back-up plan" “If needed, we will cut spending further, but also try to improve tax raising measures, especially VAT, where evasion is greatest,” Dragutinovic told daily Vecernje Novosti. She did not even rule out a rise in VAT. “However, that would be the last in a chain of solutions,” Dragutinovic said. The savings measures would hit public administration personnel hardest, the minister acknowledged. “The idea was that public administration should begin with itself, not only in terms of wages, but also in controlling the number of people employed in the public sector. If those savings aren’t enough, it will be easier to find a way to make more,” Dragutinovic said. The finance minister said that these were both political and economic calculations, and that the savings, estimated at between EUR 6.4 and 8.6mn, would enable the formation of a special fund for “extinguishing possible social fires,” which were not easy to predict. Diana Dragutinovic (FoNet, archive)
"Government has back-up plan"
“If needed, we will cut spending further, but also try to improve tax raising measures, especially VAT, where evasion is greatest,” Dragutinović told daily Večernje Novosti.She did not even rule out a rise in VAT.
“However, that would be the last in a chain of solutions,” Dragutinović said.
The savings measures would hit public administration personnel hardest, the minister acknowledged.
“The idea was that public administration should begin with itself, not only in terms of wages, but also in controlling the number of people employed in the public sector. If those savings aren’t enough, it will be easier to find a way to make more,” Dragutinović said.
The finance minister said that these were both political and economic calculations, and that the savings, estimated at between EUR 6.4 and 8.6mn, would enable the formation of a special fund for “extinguishing possible social fires,” which were not easy to predict.
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