Budget system law amendments adopted

The Serbian parliament adopted late on Tuesday amendments to the budget system law. They consist of fiscal rules that should in midterm, that is by 2015, enable the decrease of the budget deficit to one percent, slow down the salary and pension growth and make room for increase of public investments. Budget system law amendments adopted The fiscal rules also secure the country's government debt under 45 percent of the GDP, and the implementation of these recently adopted novelties in the budget system should ensure the sustainability of public finances in the midterm. Above all, the budget system amendments aim at changing the structure of public spending - the government should ensure it would by 2015 reduce step by step the proportion of pensions in the GDP from 13 percent to 10 percent, and cut down the funds for salaries in the public sector from 10 percent to 8 percent. During the last revision of the Stand-By Arrangement worth EUR 3bn, Serbia and the International Monetary Fund (IMF) agreed that the fiscal rules need to be adopted.

Budget system law amendments adopted

The fiscal rules also secure the country's government debt under 45 percent of the GDP, and the implementation of these recently adopted novelties in the budget system should ensure the sustainability of public finances in the midterm.

Above all, the budget system amendments aim at changing the structure of public spending - the government should ensure it would by 2015 reduce step by step the proportion of pensions in the GDP from 13 percent to 10 percent, and cut down the funds for salaries in the public sector from 10 percent to 8 percent.

During the last revision of the Stand-By Arrangement worth EUR 3bn, Serbia and the International Monetary Fund (IMF) agreed that the fiscal rules need to be adopted.