Serbian pension fund "near empty"

The next budget revision is likely to hit Serbia's oldest population the hardest, writes daily Blic. The newspaper goes on to say that this is "considering that most budget money each year" goes toward the pension fund. Serbian pension fund "near empty" Pensions in Serbia were raised last year, however, "no one dared touch them", the article says, because of political agreements. But now, the state coffers "can take no more, which will be confirmed after government officials and those from the IMF meet in August". A decision on whether the government will decide to raise taxes or cut wages and pensions will be influenced by the two-year standby with the IMF, worth some EUR 3bn, singed two months ago, says Blic. This money goes to the hard currency reserves, and will be drawn until 2011. However, Serbia will have access to the second installment only if the IMF agrees with the government's proposals on how to balance the budget. The measures that the Cvetkovic cabinet undertook at the time of the signing of the deal have not brought results, the newspaper continues, and says that much of the income, such as 100 percent of public companies' earnings and 40 percent of those from the state institutions, "never made it to the budget". In the meantime, production figures kept going down, while VAT and customs revenues decreased. The government's set of new duties, introduced several months ago, has not been implemented according to plan, Blic concludes.

Serbian pension fund "near empty"

Pensions in Serbia were raised last year, however, "no one dared touch them", the article says, because of political agreements.

But now, the state coffers "can take no more, which will be confirmed after government officials and those from the IMF meet in August".

A decision on whether the government will decide to raise taxes or cut wages and pensions will be influenced by the two-year standby with the IMF, worth some EUR 3bn, singed two months ago, says Blic.

This money goes to the hard currency reserves, and will be drawn until 2011. However, Serbia will have access to the second installment only if the IMF agrees with the government's proposals on how to balance the budget.

The measures that the Cvetković cabinet undertook at the time of the signing of the deal have not brought results, the newspaper continues, and says that much of the income, such as 100 percent of public companies' earnings and 40 percent of those from the state institutions, "never made it to the budget".

In the meantime, production figures kept going down, while VAT and customs revenues decreased. The government's set of new duties, introduced several months ago, has not been implemented according to plan, Blic concludes.